Speaking at a seminar on value-added tax organised by the Bharat Chamber of Commerce in Kolkata, Shome said the present system would not be final, adding that changes would be made to suit the demands of the concerned parties.
Commenting upon the revenue loss owing withdrawal of central sales tax, he said the centre would compensate for the loss.
Drawing instance from the experiences of 130 countries, which had implemented VAT, he said ''barring the exception of Czechoslovakia, none has withdrawn it. We are confident that India will also accrue the same benefits as those derived by others''.
He said the total tax collection by the states after implementation of VAT was expected to be at the same level as that of now. ''If the states suffer from any shortfall in collection, the Centre will share the burden''.
