The Hindu Business Line : Deviations in VAT rate contained to 3%

The VAT Panel on Saturday said that the deviations in rates among the implementing States have been contained to a mere 3 per cent of the total universe of 703 items under the new tax system.

"The deviations in VAT rates are within 20 items in contrast to the 703 items under the VAT system. We have discussed these matters within the empowered committee and the discussions will continue. We hope to reach a consensus on the matter soon," Dr Asim Dasgupta,Chairman of the Empowered Committee of State Finance Ministers on VAT, told reporters here .

He also said that the "authoritative list" of deviations in rates would be "categorically known" at the next meeting of the VAT Panel, which is to be held at Kovalam in Kerala on August 19. Dr Dasgupta sought to play down the issue of Kerala Government's move to deviate from the agreed rate and raise VAT rates on certain luxury items to 20 per cent.

CST phase out

On the issue of compensation for central sales tax (CST) phase out, Dr Dasgupta maintained that talks were on with the Union Finance Ministry on this issue. "Yesterday, I had a meeting with the Union Finance Minister . The Finance Ministry has prepared a compensation package. There are some more things to be added.

"A committee of commissioners of commercial taxes are looking into it. We would like to converge with the Finance Ministry very soon on this matter so that the process of CST phase out can begin as planned from October 1 this year," he said.