Turnover tax crisis may end on Monday

The Government today said it would announce its decision on turnover tax in the Lok Sabha on Monday. Among the options being considered include a reduction in the turnover tax from the present 0.15 per cent to something in the range of 0.08-0.11 per cent. Finance Minister P. Chidambaram has already ruled out a complete withdrawal of the tax or a differential rate on different traders in the market.

In a brief intervention during the debate on the Budget, the FM said, 8216;8216;I have heard various members in the House and other representatives from the market, and would like to make a statement in the House on Monday.8217;8217;

Chidambaram, it is learnt, has held discussions with the PM over the past two days on the issue. A decision on whether debt and equity mutual funds would be spared from the ambit of the transaction tax would be taken over the weekend, sources said.

Earlier this week, Chidambaram had said: 8216;8216;We must admit that transaction tax is efficient, neat, non-regressive, eliminates tax avoidance 8230; but I am prepared to relook at the numbers.8217;8217;