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PMK wants abolition of Central Sales Tax

Special Correspondent

Pondicherry: The PMK Parliamentary party leader M. Ramadoss has said that he has requested the Union Finance Minister. P. Chidambaram to abolish Central Sales Tax (CST), as the CST and Value Added Tax (VAT) were incompatible.

He said in a release here on Tuesday that he had brought the plea to the notice of the Union Finance Minister while participating in a debate on finance Bill 2006 on the floor of Parliament.

Mr. Ramadoss said that the Union Territory of Pondicherry was unable to implement the VAT because of the Central Sales Tax.

When CST was imposed on raw materials that Pondicherry was getting from other States it increased the rate of tax in the Union territory.

Hence, with the VAT and CST being incompatible, the CST should be phased out, he said.

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