State Govt will abide by the uniform sales policy — CM

The meeting was held to chalk out some solution to avoid the interstate competition in the country taking place due to variation in sales tax in different states which affected the State Exchequer, he informed, saying that the Chief Ministers have agreed to end the tax wars that have been playing havoc with their state revenues.

As per the new policy, the state governments’ packaged schemes of incentives should not be based on the sales tax, and existing sales rates will be brought on par with the agreed uniform rates. With this decision, the sales tax will be recovered in three slabs (4 per cent, eight per cent and 12 per cent) in the state from January 1, next year, he added.

Thus sales tax incentives will be abolished and three uniform floor rates of the sales tax will be set across the state, he added.