CST may be reduced to 2% next fiscal

 "The decision has been taken on the basis of concurrence of the finance ministry regarding full compensation for revenue loss to states on account of CST reduction," Asim Dasgupta, chairman of the empowered panel on VAT said today.

 The central sales tax is scheduled to be completely removed from 2007-08.

 Dasgupta also announced the pilot launch of tax information exchange system (TINXSYS), which is expected to curb the usage of fraudulent statutory forms by dealers to gain tax benefits under CST.