One of India's leading industry bodies - the Associated Chambers of Commerce and Industry - on Friday urged the government to bring sugar, textiles and tobacco products under value added tax.
In a proposal to the Empowered Committee of all state finance ministers, Assocham president Venugopal N Dhoot said that under the current VAT rules, goods used for personal consumption are exempt from VAT levy and therefore make domestic market vulnerable for overseas goods.
The industry body pointed out that at present state VAT does not cover certain sectors like textiles, sugar and tobacco. These products are charged separate duty in place of VAT, which is not vat-able.
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