The All India Organisation for Chemists and Druggists (AIOCD) has worked out a report to present to the empowered committee on value added tax (VAT) noting the disparity in collection of tax among various states.
A three-member committee appointed by the organisation last month has collected data from various states and the present tax collection (calculation) method for drugs in all the states, to prepare the report, according to sources. As part of its move to promote first point taxation, the organisation will submit the report to the empowered committee chairman Asim Dasgupta soon.
"We have compiled all the data from the states across the nation and has written a letter to the chairman of empowered committee seeking an appointment. Probably by September we will meet the chairman for presenting our report and opinion," said a member from the committee.
Besides, each state affiliates of AIOCD, which has supported the committee in collecting data, will present this report to the concerned state finance ministers, once the report is submitted. The state bodies will campaign in the respective states about the need of uniformity in tax collection and would point out the benefits of first point taxation, according to sources.
The movement follows the recent declaration of Maharasthra government switching over to multi point taxation after implementing first point taxation for around two years. With this a considerable number of states in the country are following multi point taxation, even as the trade body was seeking implementation of first point taxation uniformly all over the country.