State may introduce VAT from next year — Minister

He expressed confidence that Maharashtra’s revenue would certainly go up as the uniform rates of sales tax have been introduced in all the States. In addition, the State Government is considering re-introduction of VAT. With good infrastructure facilities and better fiscal management, Maharashtra has proved to be a better option for investment, he said.

He said that though the State’s fiscal deficit could not be avoided at this stage, the State Government was committed to reduce it substantially by curtailing undesired expenses. In the current financial year, the deficit would be reduced by Rs 3,000 crore, he added.

He informed that a high powered expenditure reforms committee has been set up by the government to minimise the expenditure and another committee set up to review the working of state-owned undertakings. More thrust would now be on improving the efficiency and productivity, he said.

Patil also agreed to review the existing labour laws for better economical growth and also to reconsider the decision to withdraw electricity and stamp duty exemption. While replying to a query during the question-answer session, he said henceforth the State Government would not impose tax amendments with retrospective effects. This announcement was welcomed by members present on the occasion.

The Finance Minister assured the gathering that the State Government would initiate appropriate measures to boost the core sector development. Though Information Technology sector is also important, the State would not neglect the core sector, he said. The Minister announced that the State Government would soon announce its new industrial policy, to promote industrialisation of backward regions.

Earlier, O S Bagdia, Chairman of Nagpur Branch of the Institution of Chartered Accountants, made welcome address. Pankaj Agrawal, Secretary spoke about the branch activities. Ashok Chandak, Central Council Member, also spoke on the occasion.

P S Thakre introduced the chief guest while Arun Rajandekar welcomed him. M M Jain, past chairman of the branch also welcomed the guest. A publication of the ICAI on VAT was presented to the minister by Anil Dani, past chairman of the branch. K M Agrawal presented a memento to the Minister and Mahendra Kamat proposed the vote of thanks. Present on the occasion were Aniruddha Shenwai, regional council member and former minister Sunil Kedar and Dr Shrawan Parate.