Mizoram government to increase VAT efficiency
Aizwal, Mar 17: In a bid to increase the state's revenue during 2006, Mizoram government has chalked out an array of measures to increase the efficiency of Value Added Tax in the region.
While announcing the measures, Chief Minister Zoramthanga today said "it is apparent that in a federal sturucture like ours, where a resource deficit state heavily depends on the Central government, introduction of VAT, with the majority of states discarding their archaic and distortionary sales tax is the boldest measure of tax reform in the country".
With VAT coming into operation in the state from April, 2005, the taxation department has been strengthened for the efficient implemention of the act, as coverage of VAT is much more than that of the sales tax in terms of items, he added.
With the aim to encourage the entreprenures in the region, the state government has already decided to exempt VAT for the local industrial units here, he said adding the VAT is exempted for any processing and manufacturing industrial unit holding a permanent registration granted by the state industries department under the new rule.
In accordance with the Mizoram VAT Tax Act sub-section(3) of section 11, the 12.5 per cent VAT imposed on some essential commodities have also been reduced to four per cent, he said.
Apart form this, to increase the revenue, various awareness campaign about VAT would also be organised among the people across the state, he said.