Don't mix politics with VAT: PM to BJP

Prime Minister Manmohan Singh today attacked the BJP for opposing introduction of value-added tax in the states ruled by it, saying it is not appropriate to bring politics in switching over to the new "forward-looking" tax regime, legwork for which was initiated by the NDA government.

Addressing a press conference, Singh expressed concern over Rajasthan's BJP government's reluctance to implement the VAT despite the state being backward.

The finance minister in the NDA regime, Yashwant Sinha, had started the work on VAT and his successor Jaswant Singh had given the date for its introduction.

"It is not appropriate to bring politics with regard to the implementation of VAT," the prime minister said.

"Till yesterday, the NDA favoured implementation of VAT and worked on it for five years," he said, adding, "I appreciate them for this", but now since they are not in the government, it is not appropriate of them to talk about opposition.

Singh said during his meeting with Rajasthan Chief Minister Vasundhara Raje, he drew her attention to VAT and expressed concern over its non-implementation in the state.

"Non-introduction of a forward-looking tax system like VAT would considerably hinder economic progress of the state," he said pointing out that industry is backward and people in the state would not get adequate sustenance from agriculture alone in the long run.

Singh said VAT is in the interest of everyone in the state, which needs to create more jobs in manufacturing and other sectors.

The prime minister, who was here to take stock of the situation relating to tiger population, assured Raje of all help from the centre in the state's development.

Emphasising that india could be strong only if its states and villages are strong, he said "it will be our endeavour to work together with all states, including rajasthan, to make them prosperous and economically strong."

On specific problems raised by raje, singh promised to take up the issues with the ministries concerned.

Raje highlighted that the state was chronically water-deficient and that a long term solution needs to be found to make agriculture more viable and secure.

On infrastructure front, she raised many issues including power, urban development, tourism and it, and sought assistance in securing clearances and approvals for certain projects such as ruidp for external funding.