BUSINESS

Central sales tax rate may be halved

By BS Economy Bureau in New Delhi
June 18, 2004 10:32 IST

Finance Minister P Chidambaram may signal the Centre's commitment to an early introduction of the value-added tax at the meeting with state finance ministers on Friday.

He is expected to announce a possible halving of the central sales tax rate to 2 per cent in the forthcoming Budget and a legislation to decide the services that should be taxed by the states.

The schedule for implementation of the VAT has been repeatedly postponed since 2001 due to a lack of consensus among the states and with the Centre.

Chidambaram is expected to flag off the meeting by announcing a possible roadmap to be adopted by the Centre for the introduction of VAT by April, 2005.
BS Economy Bureau in New Delhi

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