Ministries’ help sought to monitor VAT impact on commodities
The empowered committee of state finance ministers today decided to seek the assistance of finance ministry and other central ministries to monitor changes in prices of commodities.
By TNN |
NEW DELHI: The empowered committee of state finance ministers today decided to seek the assistance of finance ministry and other central ministries to monitor changes in prices of commodities that are covered by value-added tax (VAT). It may also seek action against companies that have failed to pass on benefits of lower rates to consumers.
Empowered committee chairman Asim Dasgupta told reporters, here today, that action would be recommended after detailed discussion with the finance ministry and industry chambers. On uniform rate of tax for bullion, the panel would meet with chief ministers of Rajasthan and Gujarat in the next few weeks to persuade them to raise the levy from 0.25% to national level of 1%.
Dasgupta said the committee has received complaints that many companies have not made changes to MRP of products which now attract lower duties under sales tax. Consumers across the country have been complaining that prices of many commodities have risen post implementation of VAT regime even where there was no change in rates.
On the whole prices have registered declining trends in the past few months. On phasing out of the Central Sales Tax (CST), he said the VAT panel has formed a committee of states tax commissioners to study the implication of phase out on states finances. The committee is to submit its report in a month���s time.
As for introduction of a 8% slab demanded by some states such as Uttar Pradesh as a condition to adopt VAT, Dasgupta said that there was no plan in the near term as the committee was more concerned about current structure of two rates-4% and 12.5%-stabilising.
The empowered committee chairman also said that the pilot run for the tax information network system (TINXSYS) which would capture data about movement of goods between states would begin from October . ���This is for the first time that a system of the kind of TINXSYS would come up in the country,��� Dasgupta said adding that initially 14 states would be hooked on to the system.
Empowered committee chairman Asim Dasgupta told reporters, here today, that action would be recommended after detailed discussion with the finance ministry and industry chambers. On uniform rate of tax for bullion, the panel would meet with chief ministers of Rajasthan and Gujarat in the next few weeks to persuade them to raise the levy from 0.25% to national level of 1%.
Dasgupta said the committee has received complaints that many companies have not made changes to MRP of products which now attract lower duties under sales tax. Consumers across the country have been complaining that prices of many commodities have risen post implementation of VAT regime even where there was no change in rates.
On the whole prices have registered declining trends in the past few months. On phasing out of the Central Sales Tax (CST), he said the VAT panel has formed a committee of states tax commissioners to study the implication of phase out on states finances. The committee is to submit its report in a month���s time.
As for introduction of a 8% slab demanded by some states such as Uttar Pradesh as a condition to adopt VAT, Dasgupta said that there was no plan in the near term as the committee was more concerned about current structure of two rates-4% and 12.5%-stabilising.
The empowered committee chairman also said that the pilot run for the tax information network system (TINXSYS) which would capture data about movement of goods between states would begin from October . ���This is for the first time that a system of the kind of TINXSYS would come up in the country,��� Dasgupta said adding that initially 14 states would be hooked on to the system.
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