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Contract system for tax collection to go

JAIPUR: The Rajasthan Government's Commercial Taxes Department has decided to do away with the contract system for tax collection with a view to making the tax administration in the State transparent and effective.

According to an official release here on Saturday, the decision forms part of the State Government's drive for tax reforms by eradicating “double taxation” in the form of commercial tax and royalty on goods. The decision would result in the closure of 2,100 check-posts of the Commercial Taxes Department across the State.

The release said royalty on certain items such as bricks and construction material, which were earlier exempted from VAT collected by contractors, would be proportionately increased to compensate for the loss caused by the termination of the contract system.

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