VAT to jeopardise tax revenue of states
VAT to jeopardise tax revenue of states
Rashtriya Lok Dal chief Ajit Singh today said the implementation of the VAT regime would lead to a decline in the tax earnings of states.
Singh told newspersons here that the new tax regime would result in the centralisation of the tax system, consequently causing significant damage to the tax revenue of states.
Though the Centre had assured to compensate the states on the loss arising from VAT, it would not be easy on its part to identify the revenue loss.
Quoting a recent survey, Singh said the sales tax collections in West Bengal had been reduced by half due to the introduction of the VAT system. The implementation of similar tax systems in other developing countries too had not given the desired results, he added.
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