Bangalore, Nov 14: Implementation of Value Added Tax and bringing about sustainability of states' finances would be among the key focus areas for the 12th finance commission, its member T R Prasad said today. "We need a total VAT. We must be able to address concerns of various state governments. It is going to be a focus area for the finance commission", Prasad told reporters on the sidelines of the 10th "quality summit" of Confederation of Indian Industry here.
Indirect taxes in India, he said, were high and it was 16 to 17 per cent more when compared to china. Multiplicity of taxes were also coming in the way, he said, adding that "we are going to work very hard (on VAT)".
Governance would be another key focus area for the commission, which would begin its work next month and was expected to submit its report before July, 2004, Prasad, a former union cabinet secretary, said. Bureau Report