The Hindu Business Line : Chambers decry VAT deferment

INDIA Inc has expressed disappointment and concern over the decision of the Centre and the Empowered Committee of State Finance Ministers to defer the implementation of a value-added tax (VAT) regime by a year.

A VAT regime that would replace the existing sales tax system was expected to be implemented by a number of States from April 1, 2002. The Union Finance Minister, Mr Yashwant Sinha, and the Chairman of the Empowered Committee of State Finance Ministers, Dr Asim Dasgupta, jointly announced on Wednesday that all the States would together move into a VAT regime from April 1, 2003 as against the earlier set deadline of April 1, 2002 for some of the States.

Terming the decision of deferment as unfortunate, the Confederation of Indian Industry (CII) said that industry was looking forward to the successful resolution of some implementation issues and a smooth switchover to a VAT regime as scheduled from April 1, 2002.

CII hoped that the time available now would be utilised to allay the concerns of industry on issues relating to Central sales tax, sales tax incentives and inter-State trade.

Expressing concern over the decision, the President of the Associated Chambers of Commerce and Industry (Assocham), Mr K.K. Nohria, said that an early consensus to make VAT a reality was imperative to give a competitive edge to the Indian industry.

He said a fully integrated national VAT would avoid the cascading effect of taxes.

Send this article to Friends by E-Mail

Stories in this Section
Mobile satellite service set for an early take-off

Plan panel hopeful of adequate budgetary support

`Poor nations must ride crest of Third Wave'

Cuba to strengthen trade ties with India

Plea against closure of SAIL units

Troops movement boosts diesel sales

`VAT delayed to strengthen tax system'

Chambers decry VAT deferment

Insat-3C launch successful

`India needs IPR courts'

Sinha to lead Indian team to WEF meet