Question

Long answer type questions.

Explain the role of chamber of Commerce and Industry in internal trade?

Answer 1

Chamber of Commerce and Industry acts as a guardian of trade, commerce and industry in order to protect and promote the common interests and goals.
Its role in internal trade is as follows:
i. Facilitates interstate movement of goods: It facilitates the activities related to inter-state movement of goods by registering vehicles, formulating transport policies and by constructing roads and highways.

ii. Levies octroi and other local taxes: Octroi and local taxes are charged on goods or from people entering a state or municipal boundaries. These taxes form an important source of revenue for the local government. The chamber also regulates the imposition of such taxes so that they do not adversely affect local trade.

iii. Brings together the sales tax and VAT structure of different states: Sales tax and VAT are important sources of revenue for the state government. Chamber of Commerce and Industry ensures that these taxes are uniform across states for maintaining a balance in trade.

iv. Development of a sound infrastructure: The development of a sound infrastructure is necessary for the smooth flow of goods. Thus, the Chamber interacts with the government and convinces the government to invest in the development of infrastructure such as roads, highways, ports, railways and electricity.

v. Ensures uniform excise duty across states: The central and excise duty is one of the important sources of government revenue. In this regard, the Chamber ensures that the excise duty imposed by the central government is uniform across states.