Modi supports two tier tax structure

Patna, Apr 5 (UNI) Bihar Deputy Chief Minister Sushil Kumar Modi today suported the two tier tax structure and urged the centre to consult the political parties on the issue.

Mr Modi, who also holds finance portfolio, hailed the centre's decision for uniform goods and services tax(GST) and said it can be implemented by 2010.

Referring to the impact of VAT in Bihar, he said that annual tax collections of the state increased by about 25 per cent in the financial year 2006-07.

Mr Modi expressed apprehensions that the centre's announcement for replacement of existing tax system through the national GST might cease the power of the states to levy tax which would not be in the interest of the federal structure of the nation.

He suggested the centre to adopt a two tier aproach for the GST and urged to consult all parties on the issue.

He said the national VAT and GST would not be justified and the centre should adopt a system in which both state and the centre had the power to levy tax.

UNI