Want demerit rate be levied on a few luxury items: ASSOCHAM

While the government is rushing to garner the support of its political counterparts, the Confederation of All India Traders (CAIT) and industry bodies like Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), ASSOCHAM and PHD Chamber of Commerce and Industry have joined hands to mount pressure on the political fraternity for the passage of the goods and service tax. With just eight days left for the winter session, representatives from these industry bodies and traders will meet Jaitley on December 16 to discuss their concerns and lend support to the Goods and Services Tax (GST) Bill.Speaking to CNBC-TV18, Sunil Kanoria, President, ASSOCHAM and Vice President, SREI Infra says the industry demands India be treated as one and all the producers across India be facilitated equally. He is of the view that the stamp duty to be subsumed.In the meeting scheduled day after tomorrow, Kanoria expects 40 percent of the demerit rate be restricted only to a few luxurious products. "Otherwise it will impact the overall development, more particularly in the auto sector and that is all we need to take care."Below is the transcript of Sunil Kanoria’s interview with CNBC-TV18's Shereen Bhan and Nayantara Rai.Shereen: What in specific, are you going to raise when you meet the Finance Minister as part of that industry meeting that will take place on December 16. We have now got the recommendations of the Chief Economic Advisor's panel, the revenue neutral rate of 15-15.5 percent, the standard rate of 18 percent and the demerit rate as high as 40 percent. Are you okay with the rates or are there going to be any specific comments that you will make on the rates itself?A: Broadly the rates are fine. We are only wanting that the rate of 40 percent is restricted to only a very limited luxury item and not all. Otherwise it will impact the overall development, more particularly in the auto sector and all we need to take care. So, what the details would be is yet to be seen but basically our view on that they would be that how we would want to express the concerns of the industry on all the traders that how important the Goods and Services Tax (GST) is.Shereen: What are the other concerns? We know the importance of the GST. One specific concern that you intend to put on the table is the demerit rate which you believe is high and it should not apply to the basket of products that the government is currently looking at which include things like tobacco, luxury cars, aerated drinks and so on and so forth. What else will you specifically put on the table as concerns on the back of the recommendations that have come in?A: The other thing would be that we would like to ensure that India is treated as one and there is no additional tax because of some of the states which may be producing states and there was a discussion in the past of one percent additional tax for that. We should not have that. We should subsume all this into it and secondly even the stamp duty which is there that should get subsumed into the overall GST and that that is what will really help even the real estate to come into line within the framework of the economic development of the country.