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Centre for talks with States on KVIC tax issue

Our Bureau

NEW DELHI, March 14

THE Centre is willing to take up with the States the issue of the high incidence of taxes imposed on the products produced by the khadi and village industries sector.

Responding to the issues raised by Dr Mahesh Sharma, Chairman, Khadi and Village Industries Commission (KVIC) over the States charging a high incidence of tax on `papad' producers in the sector, the Prime Minister, Mr A.B. Vajpayee, said that he was willing to talk to the States about this matter.

However, Mr Vajpayee added that if the papad makers were making profits, they should not worry about the high incidence of taxes imposed by some States. Mr Vajpayee was speaking while inaugurating the three-day national convention on `Rural industrialisation.'

In his inaugural address, the Prime Minister outlined a four-pronged strategy for rural development, which includes creating physical connectivity to link villages, electricity, market access and electronic services such as telecom and Internet.

Mr Vajpayee pointed out that the Government has already started work on the `Golden Quadlilateral' road project which will not only provide employment but also help the country save Rs 8,000 crore in fuel costs.

The Government, he said, has also taken several initiatives that will help create more jobs. In this context, Mr Vajpayee talked about the impetus that the Government has given to the housing sector, which, in turn should create more jobs.

The Prime Minister said that while employment opportunities in offices was shrinking the Government was taking several steps to increase employment and added that last year alone, 80 lakh new jobs had been created.

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