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Home > Business > PTI > Report


VAT may not take off as scheduled, hints FM

April 25, 2003 15:49 IST

Finance Minister Jaswant Singh hinted on Friday that Value Added Tax might not take off as scheduled in June as not all states have agreed to its implementation.

"Vat is an important initiative, which must not and cannot be defeated through faulty implementation," he said adding he would prefer that the measure be introduced by all states and certainly "not in a patchwork fashion."

In his opening remarks to the discussion on the Finance Bill in the Lok Sabha, Singh said so far only 16 states were ready for implementing VAT from June 1, of which only eight have actually legislated.

An Empowered Committee of State Finance Ministers would meet on April 29 to deliberate on the remaining issues, Singh said.

Singh described VAT as an important and progressive measure, which will benefit not only the states but also the total revenue structure in the country.

"It is, therefore, important to follow a uniform framework in terms of the basic structure of both the law and the rates across states for easing tax administration, avoiding distortions as well as unifying the nation's markets."

Trade and civil bodies have also pointed out scope for improvement in the VAT bills passed by the states, he said.

States also need to address the issue of non-conformity of some of the important provisions of the VAT legislations presented for presidential assent, he said.


© Copyright 2006 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

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Number of User Comments: 6




Sub: VAT issues

Sir The center and The PINK paper published on 26th seem to have already decided that VAT Implementation will be further delayed beyond June . ...


Posted by arun biddappa





Sub: VAT

Just wanted to know what our govt. will do if raw material is used in the production of goods that are exported....how will they consider ...


Posted by ashok





Sub: Disgusting

Welcome, Mr. Roll-back Singh! For a moment, I began to fear that you would destroy the tradition of roll-backs by FMs. I pray that some ...


Posted by AB





Sub: honey in tablet

Of course on the first sigh, the implementation of the VAT may seem to be disturbing for those who do not part their pie to ...


Posted by Rajasekar





Sub: VAT

The politicians who rules this country have consistantly failed in giving good administration. They make rules only to fill their pockets and what else you ...


Posted by vasu kannan




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