The Empowered Committee of state Finance Ministers of different states which met in Chandigarh expressed their concern, that in next six months of the current fiscal year the rate of VAT collection might be impacted due to economic recession.
They are of the view at present there is no such impact on rate of VAT collection as the VAT collection upto September in states has been 23.43 per cent higher than the corresponding period last year. “We are concerned about the possible impact of recession on rate of VAT collection in next six months. We expect that the sectors which mainly affect the rate of collection are Steel and Cement,” said West Bengal Finance Minister Asim Dasgupta, also the Chairman of the Empowered Committee of Finance Ministers.
On other agenda of the meeting, he added that the empowered committee of Finance Ministers has communicated to the Union Finance Minister, P Chidambram that GST should be levied, collected by Government of India through central GST and simultaneously through state GST. The structure should be simple for state and central GST and the rate should be same for the good and services and further the rate should be few in number. He added that the rate is being worked out and would be completed by this financial year. He said finance ministers of states expressed concern over the impact of 6th pay commission.
“We demand that the centre government that 50 per cent of the additional pay burden should be borne by the centre,” he added.
On being asked what would be the centre share’s after revising the pay, he said, “Revisions are being worked out by the state pay commissions set up by different states and data may come by December this year.”
Source: http://www.business-standard.com (November 04, 2008)
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