New Delhi: Prime Minister Manmohan Singh today (Sep 18, 2004) said that the Government has decided to set up National Tax Tribunals (NTT) and harmonise various tax laws to reduce incidence of tax-related disputes in the courts.

Addressing a conference of Chief Justices and Chief Ministers at Vigyan Bhavan, he said the Government would ensure that disputes between the Centre and public sector undertakings and among PSUs are resolved amicably without burdening the courts.

"We have decided to establish National Tax Tribunals which will reduce tax-related litigation in courts," he said.

Outlining the efforts of the Centre to reduce incidence of litigation, Singh said a great deal of litigation was the product of inefficient and non-transparent laws, for instance the tax laws in the country.

"A harmonised and rationalised tax structure is on our reform agenda. Once this is done, the causes of adjudication will diminish," he said.

Citing a sample survey conducted in Karnataka, the Prime Minister said Government litigation accounted for 65 per cent of the civil litigation in the form of appeals and that 95 per cent of the appeals failed as they should not have been filed.

Singh promised to enforce a 1994 resolution taken by the then Congress government to the effect that "disputes between the Government and PSUs, and one PSU and another do not go to courts or tribunals and that such disputes be settled between the parties amicably."