NEW DELHI: Delhi Finance Minister A. K. Walia on Thursday announced a reduction in the Central Sales Tax in the Capital from 4 per cent to 3 per cent from April 1. Further, he said, the CST would be gradually phased out in stages.

Chairing the first meeting of the VAT (Value Added Tax) Advisory Committee, in which about 200 members participated, Dr. Walia said it was decided at the second meeting of the Empowered Committee this year that CST would be phased out with 1 per cent reduction every year starting from 2007-2008 and that it would be completely phased out in the year 2010-2011.

The Minister complimented members of the traders' community for their constructive contribution in making the VAT system successful in Delhi. "VAT has proved to be a system of trust and transparency apart from providing an excellent mode of substantial increase in revenue collection,'' he said, adding that it was in force in 155 countries and all States of India except Uttar Pradesh.

Dr. Walia said the enhanced revenue collection had pushed up the pace of development in the Capital. He assured traders that the Department of Trade and Taxes would continue to implement friendly policies and announced that all the members of the VAT Advisory Committee would be issued photo identity cards.

Dr. Walia also gave a brief account of the ongoing computerisation in the Department and exhorted senior officers to make all its services online.

The Department has also introduced SMS services for its 1,900 registered dealers for communicating important messages. Refund claims of the dealers are being issued through the electronic clearing system.

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