Uniform Sales Tax in State from Jan 1

Deshmukh said that the chief ministers had chalked out a solution to the problems due to variation in sales tax rates in different states. As per the new policy, the sales tax rates will be brought on par with the agreed uniform rates. With this decision, the sales tax will be recovered in three slabs (four per cent, eight per cent and 12 per cent) in the State from January 1, 2000, he added. Deshmukh further said that no new tax incentives will be announced.

Deshmukh said that anothermeeting will be held in New Delhi to discuss the issue further.

The vicious circle of tax concessions, falling revenues, lack of investment in infrastructure, and more tax concessions to compensate for infrastructural shortcomings needs to be broken, he added.

However, the trading community is dissatisfied with the grouping made for different rates of sales tax. The taxation committee of the Federation of Associations of Maharashtra has asked the government to reconsider the classification.

The committee has recommended a uniform rate for each article through out the country, basic articles of consumption by the common man should be tax free and all concessions or subsidies should be discontinued.