Worried over pressure on Delhi infrastructure due to concentration of trade and services, a parliamentary panel has strongly recommended having uniform VAT rates in the entire National Capital Region comprising areas of the neighbouring states.

Identifying lack of uniformity in tax rates in the NCR as a main reason for concentration of trade and industry in Delhi, the Standing Committee on Urban Development has said that the uniformity in VAT in the region would encourage businesses to shift out of the capital city.

Besides Delhi, the NCR region comprises parts of Haryana, Uttar Pradesh and Rajasthan.

The Delhi Government has all along been maintaining that concentration of businesses and services in the city has resulted in increasing influx of people from other states to the city putting a lot of pressure on its already crawling infrastructure.