VAT to come into effect in a year

By Our Special Correspondent

BANGALORE, APRIL 28. The Minister of State for Finance, Mr. M.Shivanna, said here on Saturday that the system of value-added tax (VAT) would come into effect from April 2002.

He told presspersons that a discussion paper on VAT had been brought out, and it would be distributed to the members of trade and commerce organisations to elicit their opinion. The World Bank had also come forward to provide technical assistance for the implementation of VAT in the State.

Mr. Shivanna said there was a need for a national debate on the reforms to be effected in domestic indirect tax. Only such a debate would help the formulation of an effective and rational tax structure. The Emancipation Committee of Finance Ministers of the States had also made strong recommendations for reforms in the Central Sales Tax Act. The minister said the Government had taken a number of steps to increase revenue collection this year, and added that efforts were being made to check leakage in tax collection.

He claimed that revenue collection had shown a significant increase, and hoped that the target fixed for this year would be achieved.

Referring to the demand for a ban on ``gutkha'', Mr. Shivanna said that it was a Central subject, and did not come under the purview of the State Government. He called for a national debate on the issue, and said that only by mobilising public opinion, the required change could be brought out.

He, however, said that the State Government was taking steps to discourage the youth from consuming gutkha. The purpose of doubling the tax on it to 20 per cent was to wean away youngsters from that habit. Replying to a question regarding the sale of liquor near places of worship and educational institutions, Mr. Shivanna denied that permits had been given to open liquor shops in prohibited areas, and said the Government was strictly following the rules in this regard.

Replying to a question regarding certain allegations made by a member of the Legislative Council belonging to the Congress against the Chief Minister, Mr. S.M.Krishna, he said the allegations were far from true, and the Disciplinary Committee of the party would look into them.

Referring to the reported suicide of a girl in Mandya, which sparked off violent incidents recently, Mr. Shivanna said the situation was under control, and a thorough investigation was being conducted into the incident.

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Section  : Southern States
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