Bihar government rules out reduction in sales tax

Patna, Jun 13 (UNI) The Bihar government today ruled out reduction in the sales tax and urged Prime Minister Manmohan Singh to hold a meeting of Chief Ministers of all the states to bring about a uniformity in the tax structure of petroleum products.

Mr Modi along with seven other members of a high level delegation, including Assam Chief Minister Tarun Gogoi, visited Europe to study the structure of Value Added Tax (VAT) prevailing in the foreign countries.

Deputy Chief Minister and state Finance Minister Sushil Kumar Modi told newspersons here that the state government could not reduce the sales tax on petroleum products further as it was the lowest in the country.

He said the UPA government was asking the state governments to reduce sales tax as the Centre) lacked understanding in the existing structure in all the states.

Dubbing the marginal reduction in the sale tax in Maharashtra and Andhra Pradesh as an "eyewash", Mr Modi said the Centre should evolve a policy to ensure uniformity in levy of sales tax on petroleum products.

He said the rise in prices of petroleum products could have been adjusted by bringing about some changes in the duty structure.

UNI/DH SJC RN1651