Pranab to meet state FMs on CST compensation, GST in Feb
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Pranab to meet state FMs on CST compensation, GST in Feb

Last Updated: Wednesday, January 18, 2012, 19:24
 
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Pranab to meet state FMs on CST compensation, GST in Feb
New Delhi: Finance Minister Pranab Mukherjee will hold a meeting with the state counterparts next month to sort out the issues concerning Central Sales Tax (CST) compensation and implementation of the goods and services tax (GST).
     
"States have raised issue of CST compensation and GST. Finance Minister Mukherjee asked the state representatives to stick to the pre-budget consultations and give suggestion regarding that," Bihar Deputy Chief Minister Sushil Kumar Modi, who heads a panel of state finance ministers on GST, said.
     
Modi was speaking to the reporters after a pre-budget consultative meeting with finance ministers of states and Union Territories.
      
The states, he said, also pressed for abolishing upper limit of professional tax and demanded greater freedom to impose the levy.
 
The government in 1998 had increased the maximum rate of professional tax, which is levied on doctors, lawyers and other professionals, to Rs 2,500 from Rs 250 per annum.
      
"There should be an amendment to remove this upper limit of professional tax," he added.
     
The Empowered Committee of State Finance Ministers on GST has already deliberated on the issue of CST in their earlier meetings.
     
Several states have expressed unhappiness over the delay in release of funds by the Centre to compensate them for revenue losses on account of phased withdrawal of CST.
     
The Centre has released only Rs 900 crore to states as CST compensation, as against the provision of Rs 12,000 crore in the Budget for 2011-12.
     
CST, a tax imposed on the inter-state movement of goods, was reduced from 4 percent to 3 percent in 2007-08 and further to 2 percent in 2008-09 after the introduction of Value-Added Tax (VAT).
 
Delhi Finance Minister A K Walia demanded that the state's share in central taxes be raised from Rs 325 crore to Rs 1,000 crore per annum as it has been increased since 2001.
 
Walia also demanded that all sale proceed money of the Delhi Development Authority (DDA) should go to Delhi government as against the Urban Development Ministry currently.
 
He also made a case for setting up of 10 hospitals in the National Capital Region and five in the Delhi city to cater to the need of growing population of the capital.

PTI



First Published: Wednesday, January 18, 2012, 19:24


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