21 states to implement VAT, others must follow: FM

With 21 states agreeing to switch over to value added tax (VAT) from April 1, finance minister P Chidambaram today asked the remaining states, including Uttar Pradesh and BJP-ruled states, to implement it and add a historic dimension to centre-state relationship.

"According to the empowered committee chairman (Asim Dasgupta), 21 states have agreed to implement VAT from April and others have to follow," Chidambaram said while addressing state finance ministers today.

"It is a historic opportunity for states to add a new dimension to centre-state relationship where an empowered committee is really setting the agenda," he added.

Asserting that the centre was only an "observer and co-operator" and not imposing anything on states, Chidambaram said: "I am confident that a vast majority of states will implement VAT."