Date:20/03/2006 URL: http://www.thehindubusinessline.com/2006/03/20/stories/2006032001400801.htm

Back VAT on bullion

Although four States have agreed to a 1-per cent value added tax (VAT) on bullion, none of the said States has implemented it till date. In fact after the agreement, Delhi went ahead and announced concessional tax on bullion.

If each of these four States ends up granting concessional taxes on bullion, their revenue would be a meagre Rs 5 crore as opposed to the Rs 500 crore the 1 per cent VAT would bring in.

The Centre should take note of this and insist on States abiding by the VAT agreement. They, in turn, should introduce uniform taxation on bullion from April 1.

Ranjeeth Rathod

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