| "We were never opposed to VAT in-principle. Resistance of traders against VAT has lessened," Uttar Pradesh Agriculture Minister Ashok Bajpai, who represents the state in the VAT panel, said. He, however, said the state would introduce VAT only when traders come out in large numbers in support of the new tax system. |
| Bajpai attributed the lessening of resistance of the trading community against VAT to the success of the new tax system in 21 states. "Traders had apprehensions against VAT, some of which have been removed by the progress made by it in 21 states," he said. |
| Refusing to give any timeframe for implementing VAT in his state, he said the outcome of the meeting with Uttar Pradesh Chief Minister Mulayam Singh Yadav with VAT panel has to be watched in this respect. |
| Empowered Committee Chairman Asim Dasgupta had last week said the VAT panel would meet "non-VAT" states to persuade them to join the new tax regime and that such meetings would be over by the next month-end. "We will finish the work of meeting non-VAT states by August-end," Dasgupta said. |
| Once Uttar Pradesh introduces VAT, Uttaranchal may also implement it, he said |
| Uttaranchal is the only Congress-ruled state to refrain from switching to the VAT system. |
| Nav Prabhat, Uttaranchal forest and urban development minister, said the state fears trade diversion to the adjoining Uttar Pradesh if it implements the new tax system while Lucknow sticks to the sales tax regime. |
| "Due to the VAT regime, certain goods fall in higher tax slab than the existing sales tax. There is no reason for people to buy those things from Dehradun and not from Saharanpur," he said to justify his point. |
| Besides UP and Uttaranchal, Tamil nadu and five BJP-ruled states of Gujarat, Madhya Pradesh, Rajasthan, Jharkhand and Chhatisgarh have so far not introduced VAT. |
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