Budget on Feb 26, goods tax to be delayed

The Budget for 2010-11 will be presented on February 26 but the introduction of the ambitious goods and services tax (GST) may be delayed, Finance Minister Pranab Mukherjee said on Saturday.

The Budget for 2010-11 will be presented on February 26 but the introduction of the ambitious goods and services tax (GST) may be delayed, Finance Minister Pranab Mukherjee said on Saturday.

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“The Budget will be presented on February 26,” Mukherjee said at a lunch he hosted for journalists at his residence.

As for GST, he said it would take seven to eight months to bring in legislations for its introduction, earlier scheduled for rollout from April 1, 2010.

The new system, if adopted, will provide a one-shot solution to a welter of levies such as excise, value-added tax and octroi.

However, its implementation is facing political hurdles as it could rob the state governments of discretionary fiscal power.