Srinagar, June 03: Describing the existing tax regime as archaic and complicated, Jammu and Kashmir government said today it will implement the Value Added Tax regime from October 1 this year. Presenting the state budget, finance minister Muzaffar Hussain Beigh said notwithstanding the reservations over VAT that have been voiced, Jammu and Kashmir was committed to move to VAT regime from October 1, 2003.
Beigh said the existing tax regime interfered with free play of market forces and competition, caused economic distortions and entailed high cost on account of compliance and administration.
The minister said the new system would be more rational, transparent and easy to implement as well as trader-friendly.
He said VAT would help widen the tax net, tap the uncovered value addition in the trade channel and reduce tax evasion.
The area and activity specific exemptions would have to be given a go by, Beigh said.
Bureau Report