Thursday, May 5 2005 08:30 Hrs (IST) - World Time -

New Delhi: In a major move towards fiscal reforms, Government yesterday (May 4, 2005) approved a bill to streamline all existing tax laws.

The Cabinet, which met under the chairmanship of Prime Minister Manmohan Singh, also paved the way for introduction of Value Added Tax (VAT) in Bihar, now under President's rule.

Briefing newsmen, Information & Broadcasting Minister Jaipal Reddy said the Cabinet approved the Small and Medium Enterprises Development (SMED) Bill that will be introduced in Parliament in this session.

Following Finance Minister P Chidambaram's Budget announcement of a separate bill for all non-financial matters, the Cabinet approved a new Taxation Laws Amendment Bill.

The Bill will amend many of the provisions of Income Tax and indirect tax laws.

In case of the VAT bill of Bihar, the Centre had promulgated an ordinance for introduction of the new tax regime in the State. The Cabinet yesterday approved a Bill that will replace the ordinance.

The SMED bill will facilitate the promotion and development of small companies.