BUSINESS

All states set to implement VAT from Apr

Source:PTI
January 18, 2005 16:25 IST
Union Finance Minister P Chidambaram on Tuesday asserted that all state governments were gearing up for the introduction of the Value Added Tax regime from April 2005.

"Every state government has either passed laws or promulgated ordinance for VAT regime. We will enter the VAT regime from April," Chidambaram said.

He dismissed reports that Uttar Pradesh was dragging its feet on the VAT issue. Chidambaram said West Bengal Finance Minister Asim Dasgupta, who is the chairman of the empowered committee on state finance ministers, had seen the draft VAT regulation that was being readied by the UP government.

The crisis over VAT: Complete coverage

Asked about Karnataka's concern that there would be revenue loss to the state following the entry into the VAT regime, he said "I don't believe that will be the case. I believe VAT will be revenue enhancing and not revenue reducing".

Chidambaram said the Centre is committed to compensate any revenue loss as per the agreed formula in the VAT white paper.

Source: PTI
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