Vat May Miss Deadline

FM holds out hope for small powerlooms, promises edible oil excise recast

Finance Minister Jaswant Singh today indicated that the deadline for the introduction of the value-added tax (VAT) might be deferred beyond June.

He added that the interests of small powerloom weavers would be protected, and promised a level playing field for branded and unbranded edible oils through amendments in the Finance Bill, 2003.

In his reply to the debate on the Finance Bill in the Lok Sabha today, Singh said the scheme for buying back costly government debt from banks would begin in June. He also said states would swap Rs 30,000 crore of costly debt in 2003-04.

The pensions regulator will be set up soon, and the India Development Initiative under the ministry of finance will handle trade and investment promotion.

The finance minister said though states and the Centre remained committed to the introduction of VAT, laws and rates had to be uniform across states.

He said several provisions in the VAT laws did not conform to those prescribed by the empowered committee of finance ministers.

The empowered committee will meet on April 29 to address pending issues. The VAT Bills to be presented for presidential assent would have to incorporate the committee