A senior official from the World Bank has urged the Indian government to press ahead with its intention to adopt VAT (Value Added Tax), arguing that the system is a more efficient taxation method in terms of collection and compliance.
World Bank vice president and chief economist Nicholas Stern was in Bangalore last week, and explained to reporters that: "Taxation of services is an important issue. VAT is a method to tax services and it can lead to greater tax buoyancy besides ensuring better tax compliance."
Stern emphasised, however, that VAT must remain constitutionally compatible, a comment made in the light of India's immense difficulties in implementing VAT in recent months. Some states have yet to draft the appropriate legislation enabling them to enact the new tax.
Finance Minister Jaswant Singh has ruled out the introduction of VAT unless it can be implemented on a national level. Consequently, the implementation date has been repeatedly postponed and many believe that the tax will not come into force until after the Assembly elections later this year.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment