Delay in VAT implementation likely

Finance Minister Jaswant Singh on Friday hinted that value added tax VAT might not take off as scheduled in June as not all States have agreed to its implementation.

8216;8216;VAT is an important initiative which must not and cannot be defeated through faulty implementation,8217;8217; he said adding he would prefer that the measure be introduced by all States and certainly 8216;8216;not in a patchwork fashion.8217;8217; In his remarks to the discussion on the Finance Bill in the Lok Sabha, Singh said so far only 16 States were ready for implementing VAT from June 1, of which only 8 have actually legislated.

An Empowered Committee of State Finance Ministers would meet on April 29 to deliberate on the remaining issues, Singh said. He described VAT as an important and progressive measure which will benefit not only the States but total revenue structure in the country.