GOVERNMENT REGULATIONS
Tariffs only a last resort to check imports
The finance minister Mr.Yashwant Sinha has said that the government was committed to reducing import tariffs to the levels prevailing in the neighbourhood countries and ultimately settle   for two or three rates in the next two years.
 
The general principle underlying taxation policy was to impose lesser duties on raw materials and intermediate products and higher duty on final products.
 
The minister also clarified that tariff was used only as an instrument of last resort to check imports which can destabilise Indian economy and "otherwise Indian import duties are far below the WTO rates in many areas ".
 
India is moving towards single VAT regime. The government had by and large done away with the system of approvals in case of foreign direct investment and an implementation board had been set up to look into projects which were non-starters because of technical problems.
 
The government is likely to mount 'India Road Shows' in New York, Washington, Chicago and Atlanta  in the next few months to project India as an attractive destination for investment.
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