Modi for white paper on VAT

Gujarat Chief Minister Narendra Modi said that his government was willing to consider implementing the Value Added Tax (VAT) regime provided finance minister P Chidambaram tables a white paper on the experience of states which have already implemented the system.

"I had suggested to the empowered committee and to the finance minister that we would want to see a white paper on VAT. At that time, around a month ago, the other finance ministers were enthusiastic about the idea, but, nothing has been done so far," he said.

"Whatever my views were I have conveyed them to my party, we will be meeting soon to discuss the issue," he added.

Narendra Modi and Babulal Gaur have been vocal about implementing the VAT regime in their states despite the BJP's inexplicable decision not to implement it in states ruled by the party. While Jharkhand, also under the BJP has already implemented the system.

Sources said that the BJP's decision was on account of the fact that Uttar Pradesh had refused to implement VAT and the BJP feared that the ruling Samajwadi Party would wean away the trader community's vote, a hard core BJP votebank.

The pressure by Modi and Gaur has however prevailed upon the BJP leadership and the party have publicly acknowledged that the matter will be taken up for a rethink after the Bihar polls are over. The demand for a white paper is largely being seen as a way for the BJP to look for a convenient excuse to implement VAT.

"Since no convincing arguments had been put forward by the BJP omn why it was holding back on VAT, the white paper would be a convenient excuse to justify the implementation of the system, a year after the rest of the country," said a top source.

VAT was actually the baby of the NDA government and when the BJP refused to implement it, several eyebrows had been raised. It is being hoped that when a BJP chief ministers' conclave is held, the decision to implement the system would be taken finally.