"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.
