Monday, 31 August 2015

One nation, one tax


You are absolutely right in the edit 'Abolish CST' (ET, Feb 6). In addition to creating history, it will send the right signals to all states of central government's sincerity to implement VAT throughout the country under single window. Abolition of CST and uniform VAT will smoothen the business under the notion of one nation, one tax structure.
Under VAT, revenue has increased for all states. So there should not be any hindrance in CST abolition. VAT has removed the myth of negative impact on revenue.
A business friendly tax regime is the best for the health of both the business community and the government.

(This letter published in the Economic Times on 7th February 2006.)