Sunday, April 2 2006 13:22 Hrs (IST) - World Time -

New Delhi: Uttar Pradesh would not implement Value Added Tax system as it affects revenue, Chief Minister Mulayam Singh today (Apr 2, 2006) said.

"We are not going to implement VAT in the state as it reduces revenue," he told reporters after the Party's brief Parliamentary Board Meing here.

The Samajwadi Party chief was responding to a query whether his government would be implementing VAT as even five BJP ruled states have now decided to implement it.

Five more states yesterday switched to the VAT regime, which will replace sales tax.

VAT, which seeks to bring about uniformity in tax rates, has two main slabs of 4 per cent and 12.5 per cent and is imposed only on value-additions to products.