Talking to UNI, Mr Khandelwal said, ''The statement of the Chief Minister was misleading as all the commodities on which VAT has been increased are of common man's use.'' Ms Dikshit made the statement in an interview with a news agency.
The VAT was recently increased by one per cent on 176 heads by the Sheila government in Delhi.
Mr Khandelwal stated that the increase in VAT would increase in the prices of raw material, finished goods, plants and machineries subsequently increasing the base price by five per cent.
He informed that the government had to increase the tax rate to compensate the loss incurred due to expected phasing out of Central Sales Tax (CST) in September but it did not happen.
''So logically VAT should not have been increased as CST did not phase out,'' Mr Khandelwal argued.
''The government has betrayed not only the people but also the other states as it was agreed that no state will increase the rates of VAT,'' he alleged.
It is against the agreed principles of 21-point convergence signed by all the states, he added.
Demanding the roll back of hike in VAT rates, Mr Khandelwal said it was ''illogical'' as Goods and Services Tax (GST), a uniform tax applicable on all the states, would be levied from next financial year.
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