Indian states' finance ministers conclude Europe tour

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A delegation of state finance ministers from India concluded a ten-day tour of Europe on Friday after studying the implementation of the VAT system in the 27-member European Union.

"This is a high-powered delegation of state finance ministers of India. Each and every state is being represented in this delegation, including about 15 ministers," Sushil Kumar Modi, deputy chief minister and finance minister of Bihar, told the EuAsiaNews.

He said most of the state secretaries for finance were also in the delegation. Modi led the delegation as chairman of the Empowered Committee of State Finance Ministers in India. "We have come here to study the VAT system in Europe," he said.

They visited France, Spain, Belgium and Luxembourg during their tour. In Luxembourg, the ministers visited the Court of Justice to find out how the EU member states resolve their financial and tax disputes, reported EuAsiaNews.

In Brussels, they met EU officials and discussed how the 27-member bloc functions and implements the VAT and what are the problems and issues. Modi said India is going to implement the next stage of VAT.

"Already VAT has been implemented in the year 2005 and now we are going for goods and services tax. The states at the moment do not have the power to impose taxes on services so when the GST (Goods and Services Tax) will be implemented, states will also have the power to impose VAT on services," he added.

The EU also has many problems but they have done a wonderful thing in that the 27 countries having their own constitution and autonomy are trying to harmonise their VAT systems, said Modi.

The Indian embassy in Brussels hosted a reception for the delegation on Friday night.