|Press Releases: Karnataka seeks Rs 700cr. to make up for VAT loss - GIRISH RAO|
TIMES NEWS NETWORK[
TUESDAY, JANUARY 21, 2003 12:22:27 AM ]
The states commissioner for commercial taxes, Ashok Kumar Manoli, told ET that Karnataka, along with Tamil Nadu, has asked for some advance relief to be adjusted against the actuals. Besides, most of the states have also sought monthly release of the payment as against a quarterly plan.
The Centre is committed to make good the entire loss incurred by the states in implementing VAT till such time that the trend is reversed and the taxes become revenue positive.
While, the annual grants will be calculated on the basis of actuals plus a five-year average of revenues and the estimated loss through VAT implementation, compensation will be total.
For instance, Karnataka has estimated that it would have lost Rs 580 crore in 01-02 from VAT implementation. Total commercial tax revenues in that year was pegged at Rs 6,304 crore. This year, it expects revenues to grow by 5% while in 03-04, it is looking at pushing up the earnings by another 5-6%.
Meanwhile, Karnataka is bang on target with the milestones set for the implementation of VAT from April 1. Since computerisation is key to the success of the VAT regime, the state government has sanctioned Rs 47 crore for it.Mr Manoli said three major agencies are involved in helping the state to gear up for the VAT regime. CMC is advising the sales tax department on system software, site preparation, training (1,200 personnel being trained), hardware procurement and local area network implementation. The wide area network, linking the sales tax departments LVO (local VAT officers) and VSO (VAT sub-officers) posted in different zones and districts, is being supported by STPI.
Crown Agents of UK is training the trainers, developing
the application software and supporting the communication processes, basically
holding the departments hands till the VAT programme is up and running.
S Sadagopan and his IIIT-B team is also helping in customisation of the
software to suit local needs.