Panel Wants Uniform VAT Rates in NCR

New Delhi
Panel Wants Uniform VAT Rates in NCR
Worried over pressure on Delhi infrastructure due to concentration of trade and services, a parliamentary panel has strongly recommended having uniform VAT rates in the entire National Capital Region comprising areas of the neighbouring states.

Identifying lack of uniformity in tax rates in the NCR as a main reason for concentration of trade and industry in Delhi, the Standing Committee on Urban Development has said that the uniformity in VAT in the region would encourage businesses to shift out of the capital city.

Besides Delhi, the NCR region comprises parts of Haryana, Uttar Pradesh and Rajasthan.

The Delhi Government has all along been maintaining that concentration of businesses and services in the city has resulted in increasing influx of people from other states to the city putting a lot of pressure on its already crawling infrastructure.

The committee, in its report tabled today in the Parliament, asked the NCR planning board to pursue the matter with Finance Ministry and concerned states.

"The Committee feels that uniformity in VAT (Value Added Tax) rates in the NCR region would encourage business establishments to shift out of Delhi to set up businesses in the NCR region without suffering any financial loss," it said.

The committee, headed by JD(U) MP Sharad Yadav, felt removal of fiscal barriers would not only result in harmonious and balanced development of NCR region but also help in decongest the national capital.

The report also slammed the NCR Planning Board, which functions under the Urban Development Ministry, for failing to shift offices of 36 PSUs out of Delhi as decided almost two decades back to decongest Delhi. The report said till date offices of only 20 PSUs were shifted out of the city.

The committee also criticised Delhi Government for failing to prepare a sub-regional plan as part of the broader regional plan for the region.

The NCR Planning Board had asked all the constituent states to prepare sub-regional plan for overall development of the region.
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