The Associated Chambers of Commerce and Industry of India has urged Chief Ministers of Tamil Nadu, Andhra Pradesh and Kerala not to charge higher VAT including cess of 12.5% and even beyond on processed fruits and vegetables and scale the slab down to a uniform 4% as recommended by Empowered Committee on VAT.

In a representation to Chief Ministers of the respective states, Mr DS Rawat Secretary General of ASSOCHAM said that these were among other few states which are yet to execute the Empowered Committee recommendations.

Mr Rawat said that these states continue to levy additional VAT and cess on such products by restricting the scope of the category description or by shifting the product category itself from 4% level to 12.5% level.

ASSOCHAM said these states have disputed the classification of various value added fruit and vegetables like potato chips and banana chips.

(Sourced from Expressindia.com)