Monday, February 21 2005 15:51 Hrs (IST) - World Time -

Bangalore: Karnataka Government today (Feb 21, 2005) asserted that it was "very firm" on implementing the VAT (Value Added Tax) from this April 1.

"There is no confusion in Karnataka. We are ready with the rules for moving into the VAT regime," Deputy Chief Minister and Finance Minister Siddaramaiah told reporters in Bangalore while responding to queries whether uncertainty lurked in the wake of trade bodies opposing the new taxation regime.

The Central Empowered Committee on VAT set up under the chairmanship of West Bengal Finance Minister Ashim Dasgupat was expected to meet either by this month end or early March, by which time a clarity would emerge on which are the States that would go for VAT implementation.

He said barring Uttar Pradesh, other States had agreed to implement VAT from April this year at a recent meeting of the empowered committee, attended by Finance Ministers of all States.

Siddaramaiah said Tamil Nadu had not made any official announcement to the effect that it will not adopt VAT, but the neighbouring State said it wanted to exempt rice from tax.

Karnataka too took a stand that in the event of the neighbouring State exempting rice from tax, it would also follow suit to avoid trade diversion.

Siddaramaiah hoped that Tamil Nadu would also fall in line and implement VAT.

Even States like Rajasthan and Punjab, which were now trying to backtrack on VAT implementation, had consented to it at the empowered committee meeting he said and added, "there are no grounds for opposing VAT by any State".