Calcutta, Feb. 18: Bengal is set to witness heavy job losses in sectors such as leather, handicrafts, engineering and foundry.

Reeling under the impact of the appreciating rupee, these units have also not got VAT refunds worth Rs 335 crore from the state government.

“We have a forecast of eight million job losses across the country this fiscal. In Bengal, the problem is compounded as these sectors have to cope with the non-refund of VAT, ” said Ganesh Kumar Gupta, national president of the Federation of Indian Export Organisations.

According to Gupta, a labour-intensive unit such as handicrafts, has experienced negative growth of 60 per cent in the first nine months of this fiscal in the country. In Bengal, the sector has a VAT outstanding of Rs 80 crore for 2006-07 and 2007-08.

States such as Bengal and Orissa have not refunded any of the VAT amount since its implementation in 2005.

However, in states such as Tamil Nadu, Andhra Pradesh and Maharashtra, the VAT amount is refunded within 90 days of the claim.

The leather industry, which employs around five lakh people, have outstanding VAT refunds worth Rs 80 crore for 2006-07 and 2007-08.

“The non refund of VAT has made such a dent in the working capital that many micro, small and medium units have been forced to close shop or move to other states,” said Gupta.