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NDC meet to discuss tax reimbursement to states
December, 19th 2007
Union commerce and industry minister Kamal Nath has said that state governments will have to be roped in and made accountable before a decision is taken on the mechanism to reimburse state taxes to exporters. He said the issue will be discussed with state chief ministers in the National Development Council (NDC) meeting on Wednesday.

After a meeting with the trade and industry council attended by industry representatives including Ratan Tata, Mukesh Ambani, RP Goenka and Rahul Bajaj and chaired by the Prime Minister, Mr Nath said that it was not just exporters but the domestic industry, too, which was reeling under the pressure of rupee appreciation.

On the issue of reimbursement of state taxes to exporters, the minister said that there were a number of issues that needed to be addressed first. We need an assurance from state governments that they will not increase taxes, he said. Moreover, the mechanism of funding the reimbursement will also have to be tied up. We are yet to decide whether the amount should be withdrawn from the state governments fund, he said.
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