UP to embrace VAT: Dasgupta

Uttar Pradesh has decided to switch to the new Value-Added Tax (VAT) system - a move that would complete the country's biggest tax reform to do away with multiple levies in states and union territories.

"The Uttar Pradesh government has taken a decision to introduce state-level VAT. They have already sent their draft legislation for Presidential assent through the Union Finance Ministry," said Asim Dasgupta, Chairman of the Empowered Committee of State Finance Ministers on VAT.

Dasgupta was here on Wednesday to attend a meeting of the VAT committee.

Hitherto, Uttar Pradesh was the only state to have not switched to VAT from the sales tax structure.

Unlike sales tax structure, the VAT system that was introduced in April 2005 has provisions for set-off (reimbursement of taxes taxes paid on inputs).

Source : The Hindu, India, dated 28/11/2007