The Hindu : Krishna sore over VAT postponement

Online edition of India's National Newspaper
Saturday, May 03, 2003

Southern States

Southern States - Karnataka

Krishna sore over VAT postponement

By Our Special Correspondent

Bangalore May 2. The Karnataka Chief Minister, S.M.Krishna, today expressed his displeasure over the postponement of the Value Added Tax (VAT) regime.

"It is unfortunate that a reform of this magnitude should get involved in such uncertainties and confusion. It does not augur well," Mr. Krishna, who also holds the portfolio of Finance, told presspersons who met him here.

Asked if the State had registered its displeasure with the Centre, Mr. Krishna said it was his reaction as Finance Minister and Chief Minister.

Mr. Krishna hoped that it would not have any negative impact on the State's finances.

At the same time, he said the officers should not be complacent.

Reacting to the Centre's indication about further postponement of VAT regime, Mr. Krishna said there must be certain definiteness to reforms in tax matters and procrastination would not help.

Asked about the sales tax to be levied pending VAT on the basis of which the State Budget had been prepared, the Chief Minister said the State's contingency plan provided for it till the VAT legislation was brought into operation.

The State was yet to receive President's assent for the Bill.

To another question, Mr. Krishna said consultations were on and the Government was monitoring the developments.

International airport

Mr. Krishna thanked the Union Cabinet for approving the amendment to remove the obstacles in the way of Bangalore International Airport at Devanahalli. He hoped the amendment would get passed before Parliament adjourned on May 9. With this, the only outstanding issue that would remain would be of agreement on concession.

As far as Metro Rail was concerned, Mr. Krishna said a presentation was planned here on Saturday in the presence of the Union Urban Development Minister and the Secretary to the Union Ministry concerned.

River water

Mr. Krishna was asked if he expected any response to his suggestion made at Tirupati two days ago favouring out-of-court and out-of-tribunal settlement of inter-State river water disputes. He said he had not made it with any expectation, but was only giving shape to the State's good intention.

Making it clear that the state had an open mind on river water issue, Mr. Krishna said as far as drinking water was concerned, one should help the other.

Reshuffle of Ministry

The Chief Minister was reticent on the question of the reshuffle of his Ministry. "I do not know" was all that he said after a long pause.

When pressed, he said circumstances would take care of the situation at the appropriate time.

Admissions

The Government had kept its doors open for managements of unaided professional colleges who wanted to discuss admission and fee structure, but it was going ahead with its contingency plan without waiting for it (discussion). Mr. Krishna made it clear that the Government would do whatever was needed on this issue.

"Our doors are open for discussion with the designated committee which will come back to the Government, but without waiting for that we are making our contingency plan," he said.

When his attention was drawn to the threat by some private managements, headed by the ruling party men to go to court on the contentious issue, Mr. Krishna said anybody could go to court.

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