Uttaranchal postpones implementation of VAT

DEHRA DUN: Uttaranchal cabinet on Saturday deferred the implementation of value added tax in the state.
The state cabinet, in a meeting presided over by Chief Minister N D Tiwari, accepted recommendations of a ministerial committee that the implementation of VAT should be postponed because other states have also not implemented the measure, chief secretary R S Tolia told reporters.
He said parleys would be held with traders to know their views and apprehensions about the new tax, which the Centre had asked all the states to implement from April 1, but so far except Haryana, no other state has implemented.
The business community had opposed the implementation of the VAT saying it would bring back "inspector raj".
Bowing to the pressure from traders, a ministerial committee was constituted to study all aspects of VAT before its implementation. The panel submitted report only last week.
The cabinet also decided that only farmers and their family members, whose names are being enrolled in the revenue records, would be entitled to purchase agricultural land in the state to check the uncontrolled land transactions.
However, this measure would have no effect on the industrialists, who want to set up their units in the state, he added.