VAT regime in UP from New Year

Lucknow, Dec 7(UNI) Even after strong opposition from the traders, the Uttar Pradesh government today decided to implement Value Added Tax(VAT) regime in the state from January 1.

The state Cabinet meeting chaired by chief minister Mayawati, decided to enforce the new tax regime in the state from New Year.

Earlier, the state government had announced to enforce the new tax regime from December 1. But due to delay in the approval by the President to 'The Uttar Pradesh Value Added Tax Bil-2007', it was postponed for a month.

The traders' organisations had opposed VAT in the state and even went on a two-day UP bandh on November 27-28 against its implementation.

The traders were demanding that the government should implement the new VAT system for those traders whose annual business was over Rs 15 lakh. At present the government has proposed to bring all the traders whose business stood at Rs five lakh yearly under the new regime.

'' The new VAT system will only bring corruption and harassment for the traders while the revenue of the government will dip and the consumers will have to pay more for their purchase'', the leaders of the several traders organisations have claimed.

UNI