VAT panel hopeful of tax unity

The empowered committee on VAT on Monday took stock of the variation in rates of taxes among states and expressed the hope that a decision w...

The empowered committee on VAT on Monday took stock of the variation in rates of taxes among states and expressed the hope that a decision will be taken by the state finance ministers on Tuesday to ensure uniformity in VAT rates.

The panel, which met state sales tax commissioners and other officials on Monday, also expressed hope all states would agree on floor sales tax on diesel at 20 per cent. State FMs will meet on Tuesday primarily to discuss these issues.

“I am optimistic,” Empowered Committee Chairman Asim Dasgupta said in response to a query on whether some kind of a breakthrough will be achieved on arriving at a consensus on uniform VAT rates. Dasgupta, who chaired Monday’s meeting for about half an hour, said variations in VAT rates were not significant but the issue was prime on the agenda of the meeting.

Story continues below this ad

“We are collecting information from all 20 states (that have implemented VAT so far) and will discuss it on Tuesday.” Monday’s meeting with officials was only for stock taking, he added.

Empowered Committee Secretary Ramesh Chandra said all states have promised on the minimum sales rate on diesel at 20 per cent. However, the exact decision would be taken at tomorrow’s meeting.