FBT to stay, BJP ruled states to implement VAT from April one
FBT to stay, BJP ruled states to implement VAT from April one
Finance Minister P Chidambaram today gave a distinct message that the Fringe Benefit Tax (FBT) was here to stay even though the government will carry out further simplifications in Budget 2006-07 and dispelled the notion that the reform process was on hold with disinvestment of non-navratna PSUs being on track.
Mr Chidambaram said the six BJP-ruled states which had not implemented VAT, would come on board on April 1, 2006, alluding to the fact that the new system of taxtaion was a success story with revenues having been shored up in states which had shifted to the new levy.
In a wide-ranging interactive session with the Forum of Financial Writers here, Mr Chidambaram said the government was all set to achieve the Budget target for fiscal and revenue deficits.
While admitting that the reform process has been slow,Mr Chidambaram outlined steps the government has taken to put the economy on a high growth trajectory. There was sufficient evidence to prove this – the high level of investment approvals, the booming stock markets, the 30 per cent increase in non-food credit and the commendable ratings given by independent rating agencies.
More: newkerala.com