ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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VAT and State Autonomy

It is inappropriate to impose a uniform tax structure in VAT on the states for it goes against the principles of fiscal autonomy. It is a pity that erosion of the federal foundations of the polity is taking place at a time when there is need to strengthen them. Any thing that hurts India?s federalism should be jealously guarded against. One wonders whether the states while surrendering the most vital part of their fiscal autonomy thought through the implications of what they were agreeing to.

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