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Deferral of VAT does not augur well: Krishna
Bangalore, May 02: Karnataka Chief Minister S M Krishna said today he is disappointed at the procrastination in implementation of Value Added Tax system, saying there must be `certain definitives` in tax matters.
Bangalore, May 02: Karnataka Chief Minister S M Krishna said today he is disappointed at the procrastination in implementation of Value Added Tax system, saying there must be "certain definitives" in tax matters.
"It is unfortunate that a reform of this magnitude and sweep should get involved in such uncertainties and confusion. It does not augur well," he told reporters here, reacting to
the Centre's clear indications about deferring VAT.
Krishna, who holds finance portfolio, said, the “whole thing” was bogged down by mutual distrust. Karnataka was among early states, which opted for VAT and "propagated" it and would like to "watch and see what turn it will take".
Asked if the state would introduce sales tax, he said the state had a contingency plan till the VAT law came into operation. The bill passed by the state legislature had not received the presidential assent, he said. He said he hoped there would not be any negative effect on the state's finances. "Our officers should not be complacent," he said. Consultations were going on and the developments were being monitored.
Indicating that the VAT system would be put off again, Union Finance Minister Jaswant Singh had told Parliament last week that an important initiative as VAT "must not and should not be defeated through faulty implementation" and "certainly not in a patchwork fashion."
Both the Houses of Karnataka Legislature passed the bill on VAT in the budget session with all parties by and large welcoming it and government expressing its keenness to implement it.
Bureau Report
Asked if the state would introduce sales tax, he said the state had a contingency plan till the VAT law came into operation. The bill passed by the state legislature had not received the presidential assent, he said. He said he hoped there would not be any negative effect on the state's finances. "Our officers should not be complacent," he said. Consultations were going on and the developments were being monitored.
Indicating that the VAT system would be put off again, Union Finance Minister Jaswant Singh had told Parliament last week that an important initiative as VAT "must not and should not be defeated through faulty implementation" and "certainly not in a patchwork fashion."
Both the Houses of Karnataka Legislature passed the bill on VAT in the budget session with all parties by and large welcoming it and government expressing its keenness to implement it.
Bureau Report