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Hyderabad, May 13

THE Empowered Committee on VAT (value-added tax) has asked corporate houses to adjust the MRPs (maximum retail prices) taking rates in the new tax regime into consideration.

Referring to the incidences of not reducing the prices (where it was due) in the post-VAT scenario, Dr Asim Das Gupta, Chairman of the committee and West Bengal Finance Minister, said this practice could not continue any further.

Addressing a press conference here on Friday, he said some corporate houses had given in writing that they would comply with the norm soon.

The committee would monitor the retrial prices every month. Dr Gupta was in the city to hold "internal discussions with the Finance and Revenue Ministers and officials" with regard to the implementation of VAT. "We are holding similar discussions with all the State Governments," he said.

He said each State had its own specific problems. "This has been the experience in other countries as well," he said.

The committee was to review the implementation of VAT after three months of its launch on April 1.

He said the committee was confident that the problems would be sorted out through discussions.

He said the dealers in footwear and coffee trade faced some genuine problems in Andhra Pradesh. "We will discuss these," he said.

(This article was published in the Business Line print edition dated May 14, 2005)
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