New Delhi, February 23: The PHD chambers of commerce and industry (PHDCCI) has underlined the need to harmonise sale tax rates and to evolve a common strategy for the introduction of value added tax (VAT).Delivering the key note address at the annual general meeting of the Faridabad chambers of commerce and industry (FCCI) at Faridabad on Sunday, PHDCCI president O P Vaish asked FCCI to come forward with its suggestions on modifying the sales tax rates and also suggest major items which could be subjected to broadly uniform rates.
The Punjab, Haryana, Delhi chamber proposed to initiate a dialogue for a broad consensus so that the tax rate war came to an end and the states were able to generate higher revenue with lower rates as had been proved by the experience of the central government, Vaish stressed.
The PHDCCI chief felt that administrative reforms should be the first priority as the implementation of the Pay Commission recommendations had added substantial burden on state finances which meantlower funds for planned development.
Funds should be substantially increased for power sector, roads, rural development and family welfare, he added.
Vaish said the government should minimise decision making layers, adopt tool of information technology for the offices, introduce contractual employment and re-deploy the staff in more demanding areas and introduce accountability of employees.
Vaish said Faridabad was receiving special attention from the PHD chamber which had recently organised a seminar `Faridabad Vision -2010".
FCCI president R S Aggarwal, in his address, pointed out that infrastructure problems continued unabated. Power cuts were the rule rather than the exception. In addition, fluctuating voltage and irratic supply only added to the woes of the small-scale sector.
Besides, the sudden fluctuation in exchange rates adversely affected imports and made them costlier. Banks' increased rates on import finances also added to the problems of the SSI sector, he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
