Lucknow, Oct 19 (UNI) The decks have been cleared for implementation of Value Added Tax (VAT) regime in Uttar Pradesh, the only state in the country without this tax system at present.
In principle agreement for implementation of VAT system was arrived at the meeting of State cabinet headed by Chief Minister Mayawati here today.
The cabinet authorised the Chief Minister to decide on the last date for VAT being applicable in the state.
In the absence of VAT regime, the manufacturers and the traders were unable to take benefit of Input Tax Credit resulting into higher cost of goods as compared to other states.
VAT which was opposed to by the business community during the previous regime would help reduce the cost of product as the susbsequent taxation system would be abolished after this system falls in place.
The availablity of Input Tax Credit would further reduce the cost of production.