Tuesday, March 28, 2023

Citizens’ Forum demands reduction in VAT rate on automobile components


Jamshedpur : In the wake of 9-day long shut down announced by Tata Motors’ commercial vehicle plant at Jamshedpur, the industrial units of one of Asia’s biggest industrial hubs, Jamshedpur Citizens’ Forum , have demanded immediate reduction in Value Added Tax (VAT) rate on automobile components.

Tata Motors has announced a nine working days suspension of work from December 23, 2013 to January 1, 2014. Sunday, December 29 will be treated as weekly off day as per the prevailing rules.

A K Srivastava, president of the forum, has written to Energy and Health Minister Rajednra Prasad Singh and said that said that in the past months, the ancillaries have suffered loss. Due to high competition faced by the local automobile sector including Tata Motors because of high rate of VAT in the state, they are regularly taking shut downs.

He said that with Tata Motors drastically cutting production to tide over tough times vendors and auto ancillary units in the region, are facing perhaps their toughest challenge. There are about 1,100 industrial units in the Adityapur industrial area employing over 60,000 workers.

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