Delhi hopeful to bring uniformity in tax rates within a month
June, 30th 2015
Hopeful of bringing uniformity in tax rates within a month, the Delhi government plans to hold meetings with neighbouring states in this regard after the Budget Session of the Legislative Assembly.
Last month, Delhi, Punjab, Haryana and Himachal Pradesh had agreed to move towards uniformity in tax rates and develop a common market to boost trade.
According to the Delhi government, it will initiate the process of communication with other northern states as soon as the Budget Session gets over.
"We are attempting to make unified tax market. Tax department of each state is troubled with different tax rates. For instance, we often find during raids that bills of trade done in Karnataka or other far-off states are made in Delhi," Deputy Chief Minister Manish Sisodia said.
"Many finance ministers of northern states have agreed. As soon as a consensus is reached, we will implement it. I am hopeful that we will implement it within a month. We will start with a few things and for the rest we will hold a meeting with other states," he added.
A senior government official said if uniform taxation is implemented then all the states will have common rates for fuel, excise and other household goods. "Since VAT is a major source of revenue for states, uniformity of taxes is essential to safeguard revenue," he said.
Sisodia, who is also Delhi's Finance Minister, said the AAP government has initiated the move and had earlier held a meeting with neighbouring states aimed at bringing uniformity.
"We were waiting for our Budget Session as we had to make some amendments in VAT. We will pursue other states and work in the direction of having same tax structure," he said.
At the meeting in May, finance ministers of four northern states -- Delhi, Punjab, Haryana and Himachal Pradesh -- had decided to invite Uttar Pradesh, Rajasthan, Uttarakhand and Jammu and Kashmir to join the initiative.