BJP-ruled states may opt for VAT in 2 mths

Inspired by growing revenue of states that opted for value-added tax (VAT), five BJP-ruled states were likely to fall in line in two months.

MP CM Babulal Gaur on Friday said ‘‘we have resolved about 90 per cent of the issues and if the rest gets sorted out we could have VAT in the next two months. We have had talks with the Finance Minister. We want certain clarifications on the compensation as implementing VAT in present form would entail a revenue loss of Rs 1,400 crore. But we are hopeful of resolving all issues in the next two months,’’ Gaur said on the sidelines of a Ficci interactive meet.

Gaur said the issue was what would be the states’ share in central goods and service tax and also as to what extent would the Centre compensate for the revenue loss on account of VAT. He said there was also the issue of phasing out of CST but emphasised that all the BJP ruled states would act in tandem on the issue.