UT to implement VAT on Punjab pattern
UT to implement VAT on Punjab pattern
Chandigarh will implement the value added tax (VAT) system on the Punjab pattern. But the implementation could take some more time due to technical reasons, said Punjab finance minister Surinder Singla here on Wednesday.
Speaking at a conference on ‘State VAT for a common Indian market - issues and challenges’, Singla said implementing VAT was a cumbersome process and it would take a few more days to implement it in the region.
He said implementing VAT in 21 states would bring uniformity in the tax collection system.
Satya Poddar, partner in Ernest & Young, on the occasion said that when the VAT system was implemented in Canada in 1991 the same kind of objection were raised but slowly the system became clear and had been working effectively since then. “VAT spells a foolproof system and is very simplified, transparent and uniform. It is like a new Mercedes car which will run for 6-7 years without going to the service station,” Poddar added.
Haryana finance minister Birender Singh said we should not underestimate the effectiveness of VAT as the system had been working efficiently in Haryana. He said that a survey carried out in Haryana and Delhi in the pre-VAT and post-VAT period showed that the prices of rice, wheat, bread, soaps, televisions and refrigerators recorded a fall in prices compared to Delhi, while prices of salt, tea, soft drinks, toys and VCD/DVDs remained static compared to Delhi. ‘Thus, by and large, VAT did not prove to be inflationary except for a few commodities,” Singh added.