Finance
Minister Pranab Mukherjee will meet the state
government finance ministers to build political
consensus on the issue, before presenting the budget
next month, which may contain measures to implement
GST in the year beginning April 2010.
The
GST is aimed at replacing excise and service tax at
the centre and state-level VAT on factory-made goods
and services.
"My
Government has been able to significantly increase
realisation of direct taxes as a result of improved
and simplified tax administration and this process
will continue," she told lawmakers.
India
had introduced VAT in 2005 that helped state
governments to collect additional revenue, and
prepared them to support the proposed single tax at
the national level.
Industry
lobby groups have also asked the government to come up
with a blue print on GST and announce the tax rate at
the earliest that would help the investors.
Source :
Reuters India - Mumbai, India, dated 04/06/2009
