Northern states agrees to implement uniform tax structure to eliminate evasion of taxes

Sukhbir Badal participates in meeting of Northern States at New Delhi

5 Dariya News

New Delhi/Chandigarh 21-May-2015

Five Northern States today agreed upon to rationalize present tax regime by implementing a uniform tax structure (UTS) in these states including New Delhi, Punjab, Haryana, Himachal Pradesh and UT Chandigarh with a view to eliminate evasion of taxes and curb smuggling of goods through state borders. 

Decision to this effect was taken here during a high level meeting of Northern States participated by Delhi Chief Minister Mr. Arvind Kejriwal, Deputy Chief Minister Mr. Manish Sisodia, Punjab Deputy Chief Minister Mr. Sukhbir Singh Badal, Finance Minister Mr. Parminder Singh Dhindsa, Haryana Finance Minister Captain Abhimanyu and Himachal Pradesh Finance Minister Parkash Chaudhary and Advisor to Administrator UT Chandigarh accompanied by taxation secretaries from these states.

After holding detailed deliberations over the issue of variation in tax regimes, the meeting has decided to rationalize taxes and implement uniform taxation policy on petroleum products, tobacco products, automobile goods and white goods etc. to prevent tax evasion along with inter-state smuggling of goods. 

Giving details Punjab Deputy Chief Minister Mr. Sukhbir Singh Badal said decision to rationalize state taxes has been taken by Northern States jointly which will be enforced after the recommendations of coordination committee that has been constituted comprising taxation secretaries of these states. He said on the suggestions and recommendations more goods would be included in the ambit of UTS. 

Mr. Badal informed that a high level coordination committee would meet next week and work to plug the lacunas in the excise policies so that tax evasion could be curbed. He informed that it was also decided to setup a Common Economic Intelligence Unit so that the evasions of taxes and smuggling could be plugged effectively.Deputy CM also informed that the issue of having a joint excise and taxation policy was also discussed in the meeting and suitable decision in this regard would be taken. He said neighbouring states like UP, Rajasthan, Uttarakhand and J & K also invited to join this initiative.