Finance minister Yashwant Sinha has said there should be no fear of revenue loss for backward states due to the introduction of Value Added Tax in the country by 2002.
Sinha told Lok Sabha today that the new system will pose no problem for the poorer states and the schedule for introducing VAT has been unanimously ratified by the conference of chief ministers. He also added that a group of state finance ministers and union finance ministry officials are addressing the individual problems the states.
The minister said the limited experience with VAT so far has been good.
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He said there is no question of any coercion by the centre on the issue as the schedule is as per that laid down by the chief ministers themselves.
Sinha said he will shortly move a bill for the amendment of central sales tax rules to bring those rules also in accordance with the new VAT system. He agreed that the present system of administering the central sales tax is not very efficient.
In reply to a question on film financing the minister said the total loan sanctioned by IDBI is Rs 45 crores till date.
He said the banks and IDBI are moving cautiously in this field as their earlier experience has not been good.