Central Sales Tax to be reduced from 4 to 3% from April 1

New Delhi, Feb 8 (UNI) Delhi Finance and Planning Minister A K Walia today announced that Central Sales Tax in the capital will be reduced from four to three per cent from April 1.

While chairing the first meeting of VAT Advisory Committee here, he said the step was in keeping with the decision to phase out CST in stages.

It had been decided that CST would be phased out with one per cent reduction every year starting from 2007-2008, to be completely wiped out by 2010-2011.

He complimented members of the traders' community for their constructive contribution in making VAT system successful in Delhi.

VAT had proved to be a system of trust and transparency apart from providing an excellent mode for substantial increase in revenue collection, Dr Walia said.

VAT was in force in 155 countries and all states in the country except Uttar Pradesh, he added.

Dr Walia said the enhanced revenue collection had accelerated pace of development in the capital.

He assured traders that the Department of Trade and Taxes would continue to implement trader-friendly policies.

All the members of the VAT Advisory Committee would be issued photo identity cards, he announced.

Dr Walia gave a brief account of ongoing computerisation in the department and exhorted senior officials to make its all services online.

The Department was also planning to establish centralised registration cell and online payment of tax through authorised banks. It had also been decided to introduce digital signatures system, which would enable dealers to file their application and return from their place without visiting any office.

The department had also introduced SMS services for its 1,900 registered dealers for communicating important messages.

Refund claims of the dealers were being issued through Electronic Clearing System.

Principal Secretary (Finance) V V Bhatt, Commissioner (Trade and Taxes) Archna Arora, Additional Commissioners and office bearers of the VAT Bar Associations besides about 200 members participated in the meeting.

UNI