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“Our (state's) only
demand is to keep Purchase Tax out of GST model, which
otherwise can lead to a huge revenue loss to the
state,'' Punjab Excise and Taxation Commissioner Mr A
Venu Prasad told PTI on Monday.
Purchase Tax is charged by a state on purchase of
foodgrain for the central pool. Punjab and Haryana
collect substantial amount as they have large surplus
foodgrain.
Punjab collects revenue to the tune of Rs 1,000 crore
annually from Purchase Tax. The state government fears
that under the proposed GST model foodgrain might be
exempted from taxation and as a result it would lose
revenue, a senior official said.
He added that under the proposed model, the consuming
states would benefit from the GST on foodgrain as it
would be levied at the point of purchase by the
consumer.
GST, which proposes to merge most of the indirect taxes
into one, is expected to be implemented from April 1,
2010.
Punjab is looking to achieve 22 per cent growth in tax
revenue at Rs 14,062.40 crore for the year 2009-10.
Source :
Hindu Business
Line,
India,
dated
09/11/2009
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