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Sinha convenes CMs' meet on sales tax

Our Bureau

NEW DELHI, June 20

THE Finance Minister, Mr. Yashwant Sinha, has convened a conference of Chief Ministers of all States and Union Territories on June 22, to review the implementation of uniform floor rates of sales taxes and to assess the progress made towards the introdu ction of value added tax (VAT) by April 1, 2001.

The meeting is also likely to work out the milestones and methodology for introduction of VAT, the classification of listed commodities, variations in phasing out sales tax-related incentives and treatment to be accorded to special category States. Refo rms in central sales tax and consignment tax and professional tax will also be discussed.

According to an official press release, total compliance towards implementation of uniform floor rates of sales tax has been reported by Maharashtra, Andhra Pradesh, Nagaland, Sikkim, Manipur, Daman & Diu and Dadra & Nagar Haveli and near total complia nce by all the remaining States & UTs except Bihar, Pondicherry, Arunachal Pradesh and Mizoram.

While Arunachal Pradesh and Mizoram do not have sales tax system, Andaman & Nicobar Islands and Lakshadweep have not been bought in the ambit of this decision.

The Conference is to take a view on the recommendation of the Standing Committee of the State Finance Ministers in regard to 25 per cent cut in Central financial assistance to Pondicherry and Bihar and also likely to endorse the suggestion that Aruna chal Pradesh and Mizoram should enact suitable legislation to introduce sales tax and subsequently move towards a uniform floor rate.