Saturday, Feb 05, 2005
Saturday, Feb 05, 2005 |
| Karnataka | ||||
|
News:
Front Page |
National |
Tamil Nadu |
Andhra Pradesh |
Karnataka |
Kerala |
New Delhi |
Other States |
International |
Opinion |
Business |
Sport |
Miscellaneous |
Engagements |
Advts: Classifieds | Employment | Karnataka
By Our Special Correspondent
BANGALORE, FEB. 4. The Legislative Assembly today passed the Karnataka Value Added Tax (Amendment) Bill, 2005, giving effect to the decisions taken at the national level to replace the present sales tax system with value added tax (VAT) from April 1, 2005. The Deputy Chief Minister, Siddaramaiah, who piloted the Bill, said there will be teething problems during the transition to VAT, and if the Centre is not able to help overcome them, the State can opt out. It is not binding on any State to be part of the VAT system as sales tax is a State subject, he said and added that Uttar Pradesh has opted out. He said 550 goods are covered under the VAT system with two basic rates of four per cent and 12.5 per cent. The Centre has agreed to bear the loss of the States by 100 per cent in the first year, 75 per cent in the second year and 50 per cent in the third year. It is estimated that Karnataka will lose about Rs. 1,800 crores annually and the Centre will compensate. On service tax, which comes under the purview of the Union Government, he said the State has sought to levy it, and an amendment to the Central Act is necessary.
Tax on rice
With regard to Tamil Nadu's request to keep rice out of the VAT system, Mr. Siddaramaiah said Karnataka will seek a similar exemption from the Empowered Committee to ensure parity in the region.
Petrol, diesel prices
He said the goods exempted from VAT included petrol; special boiling point spirit; rectified spirit; and liquor, including beer, feni, liqueur, and wine. The State has been empowered to levy tax on these items. Karnataka will announce the tax rates for these items after the neighbouring States announce the rates. "At the moment, we cannot tell whether it will be on a par with other States or not. We will discuss this at the Empowered Committee meeting scheduled this month." In Karnataka, he said, sales tax on petrol is 28 per cent and diesel 20 per cent. Although the tax rate is higher in Tamil Nadu at 30 per cent, transportation charges make petrol dearer in Karnataka. Earlier, J.C. Madhuswamy (Janata Dal-United) took exception to certain items being moved from Schedule 1 to Schedule 3, which result in them attracting higher tax rates. Mr. Madhuswamy, G.V. Srirama Reddy (CPI-M) and Vishveshwar Hegde Kageri (Bharatiya Janata Party) urged the Government not to burden the common man in the process of widening the tax base.
Printer friendly
page
News:
Front Page |
National |
Tamil Nadu |
Andhra Pradesh |
Karnataka |
Kerala |
New Delhi |
Other States |
International |
Opinion |
Business |
Sport |
Miscellaneous |
Engagements |
|
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu
|
