New Delhi: Parliament has approved a Bill to phase out in four stages the central sales tax (CST) and eventually abolish it in three years.
The Taxation Laws (Amendment) Bill, passed by the Lok Sabha on Wednesday, was returned by the Rajya Sabha on Thursday after approving it by a voice vote without discussion. The Bill, piloted by finance minister P. Chidambaram, was passed amid din with opposition BJP and other members demanding a discussion on Nandigram killings.
Meanwhile, the government has notified reduction in CST to 3% from 4% with effect from 1 April. Abolition of CST will pave the way for an integrated Goods and Services Tax (GST) that will be introduced by 1 April 2010.