New Delhi, Jan. 16
THE Union Finance Minister, Mr P. Chidambaram, is to release on Monday a `white paper' on the proposed value-added tax (VAT) regime that is expected to replace the sales tax system from April 1.
The Empowered Committee of State Finance Ministers on VAT had endorsed the `white paper' at a recent meeting held in the Capital this month.
The white paper is likely to detail the VAT design that is sought to be implemented.
It is also expected to indicate the state of preparedness of various States in implementation of VAT.
Under VAT, taxes are calculated on the value addition done at each stage and the input tax credit accumulated from the previous stage is adjusted against the output tax paid in the return period.
"The various features of the proposed VAT system that we have been discussing and announcing from time to time is likely to find a mention in the white paper," sources said.
Meanwhile, State Governments have started to roll out print media campaigns on the proposed VAT regime.
The government of National Capital Territory of Delhi Government has already started rolling out with a media campaign to enhance awareness about VAT among public and the business community.