Review levies, States told

The Centre wants the States to give up levying tax on commodities covered under the additional excise duty (AED) list, bring an end to ‘rate-war’ in matters relating to sales tax and to think afresh about the proposal to levy tax on inter-State movement of goods in the context of new liberalised economic policies. It also wants to include certain additional items as declared goods under the Central Sales Tax (CST) Act. According to a Finance Ministry note, several States have resorted to levying tax in disguise on commodities covered under the AED list. Though technically there is no bar on States doing so, such an act defeats the whole purpose with which the National Development Council recommended levy of AED. The States have breached the provision which is the strength behind the Additional Duties of Excise (Goods of Special Importance) Act, 1957.

Greenspan downplays derivatives risk

Federal Reserve Chairman, Mr. Alan Greenspan and top regulators on Wednesday defended their role in regulating derivatives arid downplayed the danger of the $12 trillion market ever triggering a financial disaster. The regulators told a House panel that new laws were not needed to rein in the market and hastily passed ones could do more harm than good — though the head of the Securities and Exchange Commission left open the door to new legislation. Just a week ago, a two-year Congressional study called for new laws, warning that the complex financial instruments posed a serious threat to the financial system and that a market upheaval could force a taxpayer-funded bailout. Lawmakers have responded with a bevy of proposals

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