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FM, VAT panel to work out compensation package
August, 25th 2006
Union Finance Ministry and VAT panel will try to iron out their differences over a compensation package in a week's time to enable states to implement phased reduction of central sales tax from October 1. Union Finance Ministry and the Empowered Committee of state finance ministers on VAT have some differences over the compensation package and both sides will try to iron them out, VAT panel Chairman Asim Dasgupta told mediapersons after meeting Finance Minister P Chidambaram. "We are trying hard from both sides to converge to an agreed compensation package. Our meeting in that sense is fruitful. There were some differences of opinion. We are trying to iron out those differences," he said. To this end, Parthasarthi Shome, Advisor to the Finance Minister and VAT Panel Secretary Satish Chandra will work out an agreed compensation package. "In seven days time, we will meet again with an objective to attain convergence to agreed compensation package," he said. When asked how confident he is that CST phase-out would start from October 1, Dasgupta said he is incurably a confident man. Coming out of the meeting, Chidambaram merely said," We need to meet again."
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