Various stakeholders of Micro, Small and Medium Enterprises (MSME) met Chief Secretary B K Patnaik to highlight their problems on the closing day of the ninth Entrepreneurs’ Week, organised by the MSME department here on Monday.
The MSME stakeholders raised the issue of high rate of VAT levied through Export Promotion and Marketing (EPM) rate contract. The VAT imposed on aluminium in the State is 5 per cent. But the Central Sales Tax (CST) levied on aluminium is just 2 per cent. “Major buyers from the State like Nalco get raw materials from other States as they have to pay less tax,” said Utkal Chamber of Commerce and Industries president Ramesh Mohapatra.
The Chief Secretary said a new circular on EPM rate contract will be issued by the MSME department. This would clear the confusion surrounding the EPM rate contract. The concerns regarding the VAT will also be addressed, he added.
In view of the problems faced by the MSMEs, the Chief Secretary directed IDCO to set aside two days every week to address their problems.