Goa defers implementation of uniform sales tax rates

Goa defers implementation of uniform sales tax rates
EXPRESS NEWS SERVICE

PANAJI, JANUARY 17: Goa has deferred implementation uniform sales tax rates as prescribed by the Central Government. The uniform rate was to have come into effect in Goa on Friday.

A sub committee has been set up to look into the implications of the uniform rate, Chief Minister Fransisco Sardinha told reporters after a cabinet meeting on Monday. The panel will submit its report in a fortnight. ``We can't hurry (with the implementation) under pressure from the Central Government. We have to keep interests of the State in mind,'' the Chief Minister said.

The implementation of uniform sales tax would have led to a sharp increase in prices of most consumer products. Tax on computers would have risen from nil to eight per cent while cars and two-wheelers would have attracted 12 per cent tax up from four per cent. Similarly, sales tax on alcoholic beverages would have risen from 8 per cent to 20 per cent.

In anticipation of the hike, several government departments had already raised duties. Trading communityhas expressed strong objection to proposed uniform tax. Dealers in motor vehicles and white goods told The Indian Express that bargain hunters from neighbouring Karnataka and Maharashtra would no longer patronise shops in Goa as prices would be uniform everywhere.