Thursday, July 21 2005 19:46 Hrs (IST) - World Time -

New Delhi: An official panel on Value-Added Tax (VAT), which is trying to convince eight states to embrace the new tax regime, today (July 21, 2005) urged the trading community to create a VAT-friendly atmosphere.

"Chief Ministers of two states have said they will implement VAT if traders agree. We need your (traders) help," the Empowered Committee on VAT secretary Ramesh Chandra said to traders, at a conference here. Introduction of uniform VAT rates in all sates would benefit the trade and industry, he added

Eight states; Uttar Pradesh, Uttaranchal, Tamil Nadu and five BJP-ruling states of Gujarat, Madhya Pradesh, Rajasthan, Chattisgarh and Jharkhand, have refused to implement VAT that came into effect in April this year.

Traders have been in forefront in organising protests against VAT. In fact, Uttar Pradesh Chief Minister Mulayam Singh Yadav had categorically stated that if traders agree, the state would implement VAT.

State Agriculture Minister and VAT panel representative Ashok Bajpai had told reporters earlier this month that trader's resistance against VAT had "lessened". Apprehensions against VAT have lessened due to demonstration of benefit of the new tax system in 21 states, he had said.