The entrepreneurs drew the government´s attention after it showed no interest in lifting VAT, despite promising the same last year. They said the industries would have no option but to close their operation if VAT is not lifted as promised. [break]
Ajaj Alam, president of Rupandehi Chamber of Commerce and Industry, said the consequences would be severe if VAT imposed on recycled products is not lifted.
Instead of protecting industries recycling industries consuming trash collected from the streets, the government is discouraging us by imposing unnecessary tax, they said.
"Finance minister and other officials of Finance Ministry were positive on lifting VAT before the budget for the current fiscal year was presented," Alam said, adding, "But it didn´t materialize."
The entrepreneurs have heaved a sigh of relief after the government annulled scrap tax imposed on movement of scraps. However, removal of VAT on recycled products has been their major demand.
"The removal of VAT will help create investment-friendly environment," Alam added.
About 500 recycling industries are operating in different parts of the country. Most of the industries are centered in Parsa, Rupandehi and Chitwan districts.
"We expect the government to lift VAT in the coming fiscal year because India is also giving similar privilege to recycling industries there," Ganesh Raj Adhikari, president of Rupandehi Recycling Industries´ Association, told myrepublica.com.
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