The Hindu : Business : FICCI, CII urge BJP-ruled States to implement VAT

Online edition of India's National Newspaper
Wednesday, Mar 23, 2005

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Business

FICCI, CII urge BJP-ruled States to implement VAT

By Our Special Correspondent

NEW DELHI, MARCH 22. The Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) on Monday urged BJP-ruled States to reconsider their decision not to implement the proposed tax structure from April 1.

"We urge the BJP State governments to work on the internal mechanisms along with the Centre to iron out any difficulties,'' the FICCI chief, Onkar S. Kanwar, said in a statement.

"It is the progressive tax system that will appropriately address the multiplicity of state taxes and rates,'' he said adding that the BJP, while in power at the Centre, had rightly pushed for its introduction.

The CII President, Sunil Kant Munjal, said that in a globalised environment, the external sector of the economy was opening up fast in keeping with international practices. However, this was not being matched by concomitant internal reforms including tax reforms.

The decision of some States to defer implementation of VAT would be particularly detrimental to manufacturing industry besides the overall economy, the CII President said.

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