Srinagar, June 22: Jammu and Kashmir government is likely to convene a special session of the state legislature in August to hold exclusive discussion on Value Added Tax (VAT) Bill. A decision to this effect was taken after opposition members raised objections that they were unable to give their opinion on the bill tabled in the state assembly by finance and parliamentary affairs minister Muzaffar Hussain Baig yesterday.

After introducing the 116-page Jammu and Kashmir Value Added Tax Bill in the house, Baig agreed to the suggestion of the members to hold thorough discussion and announced that government would convene a special session of the house for the purpose of discussing the bill exclusively. The bill envisages replacing the trade laws (sales tax) by more rational, transparent, easy to implement and trader friendly regime vat having uniformity in the tax structure across the country.

It also envisages eliminating inspectors raj, removing economic distortions as the existing trade laws create and providing for a system in which the tax compliance could be firm and friendly. Based on the model draft legislation and the state's specific requirements, the bill would also enlarge the base for contributing additional resources in a significant manner, the minister said.

The house passed four amendment bills with regard to Jammu and Kashmir Passengers' Taxation Act, 1963, Jammu and Kashmir Motor Spirit and Diesel Oil (taxation of sales) Act Samvat 2005, Jammu and Kashmir Entry Tax on goods act, 2000 and Jammu and Kashmir State Legislature Member's Pension Act, 1984. Bureau Report