Uniform floor sales tax for country
New Delhi: The state governments are to implement uniform floor sales tax rates, phase out sales tax-based incentives by 1 January 2000, to end inter-state tax war and set set April 1, 2001 as the date for introduction of a unified value-added tax regime in the country.

These decisions were taken at the one-day chief ministers’ conference. The chief ministers also agreed to rationalise the central sales tax and constituted a standing committee of state finance ministers to monitor these decisions.

Minister of state for finance Dhananjay Kumar said the floor sales tax will be zero, 4, 8 and 12 per cent besides two special rates of 1 and 20 per cent. He clarified that there will be no revenue loss due to the uniform floor sales tax rates.
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RBI curbs on debit/smart cards
Mumbai: The Reserve Bank of India has introduced a number of restrictions on the issue of debit cards and smart cards by banks. In its guidelines on the issue, the RBI has barred the banks from tying up with non-banking entities and the use of such cards to withdraw cash/make deposits from point of sales. It has also imposed existing reserve requirements on smart card balances.

The central bank said banks can introduce smart/debit cards with the approval of their board without any prior approval of the RBI. However, banks have to inform RBI the details of the cards introduced with a copy each of the agenda note put up to their boards and the resolution passed. The card operations are to be reviewed at half-yearly intervals with fortnightly reports on operation sent to the RBI.
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RBI notification on NBFCs
Mumbai: The Reserve Bank of India has notified that non-banking financial companies’ borrowings from mutual funds will be exempted from the purview of public deposits. The NBFCs have also been asked to give three months’ prior public notice about change in ownership or control.
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Bank of Rajasthan’s rights issue
Mumbai: With the Rs 67.28-crore rights issue, the capital to risk weighted assets ratio of Bank of Rajasthan is expected to increase to six per cent from one per cent at present. The bank is offering existing shareholders a total of 4,48,55,480 shares of Rs 10 each at a premium of Rs 5 in the ratio of five equity shares for every two equity shares held. The issue is closing on 22 November. The issue will also see the stake of the bank’s chairman Pravin Kumar Tayal going up from the present five per cent to 14.5 per cent.
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