Tea, edible oils become cheaper in UP under VAT

Dismissing all speculations of traders about the new tax regime in Uttar Pradesh, Chief Minister Mayawati today said value added tax (VAT) was aimed at benefiting the common people and would accelerate the pace of development in the state.

Addressing a Press conference here, Mayawati said with the implementation of VAT, UP had entered the national economic mainstream and would yield best results in the country, playing an important role in the development of industry and commerce.

She held the Opposition parties responsible for instigating traders against VAT for their vested interest. The new tax regime has been enforced in the state from today even as the traders have called for a day-long state bandh to protest the implementation of VAT. The truckers association had called off their indefinite strike following the setting up of a four-member committee to deal with their problem.

"With the introduction of VAT and bringing the tax structure of UP on a par with other states, illegal transportation of goods will be curbed and all, including the common public, farmers, industries and traders will be benefited," she said and called upon manufacturers and traders to pass on the benefit of the tax reduction to the consumers.

The chief minister said keeping in view the needs of the common man, tax rate on 91 items has been reduced in VAT. While the tax rates of 75 articles remain unchanged, those of 20 articles have been increased but the option of reconsidering this rate is still open. With the new system, now 15 rates of trade tax have been reduced to four.

Criticising the Opposition parties for raking the issue of VA T through traders, she questioned that how could the Congress and the BJP oppose the new tax regime, when their governments in Delhi, Haryana, Madhya Pradesh and Rajasthan have implemented it in the past.

The chief minister said commercial tax comprises about 58 per cent of the total revenue of the state and 10 per cent growth rate has been fixed for the state under the 11th Five-Year Plan, for which heavy capital was required. This required implementation of a tax system having less rates of taxes and capable of collecting more tax revenue.

Without taking any name, she said the previous government succumbed to the pressure of few selfish elements and failed to implement VAT, which adversely affected industrialisation in the state, besides failing to curb tax evasion. UP is the last state to implement the VAT, which was introduced in the country from April, 2005.