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Rajasthan for abolition of central sales tax

"I would urge once again that the Centre should compensate the loss of revenue in sales tax due to implementation of VAT to the extent of 100 per cent," Chief Minister Ashok Gehlot said addressing the chief ministers' conference on fiscal situation.

He also asked for abolition of central sale tax, adding: "These two taxes cannot be imposed simultaneously. The purchase price of various items would increase, which would not be desirable".

Commenting on the fact that at present 90 per cent of service tax sources are controlled by the Centre, Gehlot said service tax should be brought under the purview of VAT for it to become meaningful.

On the overdraft regulation scheme, he said the Centre should consider releasing a medium term loan to the extent of at least 50 per cent of the opening deficit of states as on April one this year.

Claiming that the state has almost completed power sector reforms, Gehlot stressed the need for framing a national policy for levying electricity tariff rates in the agriculture sector.

Pointing out that the state is suffering from its fifth drought, Gehlot said the most important need of the hour is to provide employment to people and save their cattle.

"Therefore, we would urge the Centre to extend all possible support to the state in this period of crisis".

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