Bangalore: Karnataka Chief Minister S M Krishna on May 2 came out against deferring implementation of Value Added Tax (VAT) system, saying procrastination would not help and there must be "certain definitives" in tax matters.

"It is unfortunate that a reform of this magnitude and sweep should get involved in such uncertainties and confusion. It does not augur well," he told reporters reacting to the Centre's clear indications about deferring VAT.

Krishna, who holds Finance portfolio, said "the whole thing" was bogged down by mutual distrust. Karnataka was among the early states which opted for VAT and "propagated" it, he said, adding it would like to "watch and see what turn it will take".

Asked if the state would introduce sales tax, he said the state had a contingency plan till the Act on VAT came into operation. The Bill passed by the state Legislature had not received the Presidential assent, he said.

He said he hoped that there would not be any negative effect on the state's finances. "Our officers should not be complacent." Consultations were going on and the developments were being monitored, he said.

Indicating that the VAT system would be put off again, Union Finance Minister Jaswant Singh had told Parliament last week that an important initiative as VAT "must not and should not be defeated through faulty implementation" and "certainly not in a patchwork fashion".

Both the Houses of Karnataka Legislature had passed the Bill on VAT in the Budget session with all parties by and large welcoming it and government expressing its keenness to implement it.

PTI