At least 11 states accounting for two-third of the country's trade and industrial output are ready to introduce value-added tax from June, but a final decision would be taken after a meeting of the Empowerment Committee with Finance Minister Jaswant Singh shortly.
Even if the Centre does not reduce the central sales tax to 2.0 per cent, the Empowered Committee claimed that 11 states were willing to implement VAT with 4.0 per cent for the next six months after which the remaining states are expected to fall in line.
"The committee assessed that 11 states are fully prepared to implement VAT beginning June 1. We requested the finance minister to examine the VAT bills, to be sent to the Centre by May 8-9, and support the states in receiving presidential assent and compensation for revenue loss," VAT panel chairman Asim Dasgupta told reporters in New Delhi.
The finance minister has assured that the VAT bills will be duly examined and a meeting would be convened shortly and a collective decision will be taken regarding the date for the introduction of the new tax regime, he said.
Till now, the states, which are ready for VAT are Andhra Pradesh, Maharashtra, West Bengal, Gujarat, Karnataka, Madhya Pradesh, Kerala, Assam and Meghalaya.
Tamil Nadu and Haryana have already introduced VAT Bills in their respective assemblies.
"These 11 states account for two-third of India's trade and industrial output," Dasgupta said.
