The assurance was given by Soren to a delegation of industries led by SK Behra, who is the chairman of Confederation of Indian Industries (CII), Jharkhand council, in Ranchi on Monday last. (Agencies)
Behra told reporters here today the delegation had apprised Soren about the tough competition faced by automobile companies in Jharkhand, including Tata Motors due to the high VAT in the state and demanded that it be reduced to the level existing in West Bengal and Bihar.
The automobile companies in Jharkhand are required to pay VAT of 12 to 14 percent against 4 and 5 percent in West Bengal and Bihar, respectively, he said.
The delegation told Soren that several automobile companies from south India were keen to invest in Jharkhand but the prevailing VAT rate, the bad road conditions and lack of proper air connectivity were standing in the way.
Soren expressed concern over the tardy pace of repair of the national highway in the state and assured to take up the issue with the Union Government soon.
He demanded that VAT refund should be made within a timeframe and urged the chief minister to take appropriate step to ensure refund of Rs 280 crore VAT accumulated during the last three years to Tata Motors.
VAT should be charged at four to five percent on all products, including ancilliary products such as engine, axil and propeller to promote sale in Jharkhand.
If the VAT rate was reduced to four to five percent, people would buy and register their vehicles in the state which would generate more revenue in the state's exchequer.
Behra also demanded that a special regional transport office be set up here for immediate registration of commercial vehicles.
The assurance was given by Soren to a delegation of industries led by SK Behra, who is the chairman of Confederation of Indian Industries (CII), Jharkhand council, in Ranchi on Monday last.