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Fears of price rise due to VAT unfounded, says tax official
A Correspondent in New Delhi |
April 16, 2003 16:40 IST
The concerns over a rise in prices, more paperwork, and prosecution sanctions due to the implementation of the Value-Added Tax regime, to be ushered in on June 1, are unfounded, said a senior tax official on Wednesday.
Amit Yadav, additional commissioner, sales tax, New Delhi, said this while addressing members of the Confederation of Indian Industry in New Delhi.
Yadav said that most of the prices, in the long run, would come down and the process will bring about more transparency.
He, however, said that while the VAT regime aimed at bringing about uniformity across the nation, the ground reality is that several states are not conforming to the pre-agreed uniformity in the system, rules and procedures.
He said that Delhi was administratively prepared to implement VAT, but the decision had been deferred as several of the neighbouring states -- barring Haryana -- had not implemented VAT.
He said that the Draft Bill had already been notified early this year and the VAT information exchange would also be in place soon for which tenders had been floated.
He called for greater interaction and information sharing between state governments, industry and said that industry associations like CII could play an active role in this.The VAT crisis: Complete coverage