VAT: Drastic steps against UP likely | india | Hindustan Times
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VAT: Drastic steps against UP likely

THE EMPOWERED Committee on VAT may recommend some drastic steps against UP in a bid to compel it to adopt the Value Added Tax (VAT) regime, at a meeting in Delhi, tomorrow. State?s trade tax officers, including trade tax commissioner, Rajnish Gupta will participate in the national-level meeting to be chaired by Empowered Committee chairman and West Bengal finance minister, Asim Das Gupta.

india Updated: Apr 10, 2006 00:55 IST

THE EMPOWERED Committee on VAT may recommend some drastic steps against UP in a bid to compel it to adopt the Value Added Tax (VAT) regime, at a meeting in Delhi, tomorrow.

State’s trade tax officers, including trade tax commissioner, Rajnish Gupta will participate in the national-level meeting to be chaired by Empowered Committee chairman and West Bengal finance minister, Asim Das Gupta.

The Committee has called the meeting to discuss the measures about how to tackle the erring Sates which have been refusing to usher into the VAT regime despite a lot of persuasion.

It will also discuss the issues related to varied tax rates prevailing within the VAT states themselves.

Sources here said that Monday’s meeting was crucial in the sense that it might recommend some drastic measures against UP to force it to fall in line with the VAT states.

The measures might include stopping of the Central financial aid to the State, they said. The Empowered Committee had its last meeting given indications to this effect.

Now, UP and Tamil Nadu are the only two States which have not accepted the VAT. All the BJP-ruled states, including Rajasthan, MP and Gujrat, recently announced introduction of VAT. However, UP is elated about the record revenue collection during 2005-06.

“Our trade tax collection  growth has been 27.9 per cent which is the highest ever and this is also higher than that of any other state,” claimed trade tax commissioner, Rajnish Gupta.

Claiming that non-implementation of VAT had made no adverse impact, financial advisor to the Government, Banwari Lal Kanchhal has been reiterating that VAT will never be introduced in the state.