Mayawati to introduce VAT in UP by this fiscal

Lucknow, June 29 (UNI) After being blocked by the previous government, the Mayawati government has decided to introduce Value Added Tax (VAT) in the state from the current fiscal.

''In principle, government has decided to enforce VAT and within two-three months it will be introduced,'' said state cabinet secretary Shashank Shekhar Singh.

Addressing a press conference after the budgetary proposals for 2007-08 were tabled in the assembly by the chief minister and finance minister Mayawati, Mr Singh said already employees and officials are being trained for the new tax regime.

''UP is the only state where VAT is not enforced hence we cannot delay it further,'' he said adding that even industries are also demanding early enforcement of VAT system.

Discussing in detail about the budgetary proposals, the official said it is for the first time Rs 10,000 crore has been kept for rural infrastructure in the state and the social security pension for destitute widows, handicapped and old age has been doubled to Rs 300 per month.

State principal secretary (finance) Shekhar Agarwal said that for the first time the budgetary proposals of infrastructure development has been hiked by several folds with record in the power and urban housing development department.

He said while the grants of power department has been increased to Rs 9,209 crore from Rs 4,530 crore with a target to generate 10,000 megawatt of power by three years, the budget of the urban and housing department has been hiked by five times.

He said the government has also proposed to set up seven medical colleges in the private sector.

UNI