TN, UP 'too intelligent' by not opting for VAT: FM
FM warned that Tamil Nadu and Uttar Pradesh would be put to disadvantage by not implementing VAT.india Updated: May 02, 2006 18:00 IST
Finance Minister P Chidambaram on Tuesday warned that Tamil Nadu and Uttar Pradesh would be put to disadvantage by not implementing Value-Added Tax, which has been adopted by all other states.
"When all other states, including the BJP-ruled ones, have implemented VAT, Uttar Pradesh and Tamil Nadu have not opted for VAT. Chief Ministers of these States are too intelligent," he told reporters.
He cautioned that "the industry will shift to other states and new industries, particularly manufacturing, would not locate (in these states)."
When asked about the reported delay in disbursement of VAT money, Chidambaram said there was no delay. The funds would be handed over the next day after receiving the audit report, he said.