Indore, Apr 05: Washing its hands off the Vat issue agitating the minds of the traders in the country, BJP today urged state governments to enter into a dialogue with the business community to remove their misunderstandings and make amendments in the legislation, if necessary. In an apparent bid to placate its vote base among the trading community, the party adopted a special resolution at its national executive here today.

It asserted that "the very concept of Vat was initiated during the Congress regime and majority of all state governments belonging to all political parties had accepted it voluntarily. It is blatantly wrong to suggest that central government or BJP had forced this legislation on state governments". Taking note of the widespread resentment and misunderstandings in the minds of the business community, the resolution said "vat is a state legislation replacing sales tax, which is again primarily a state subject. State governments belonging to all political parties have legislated Vat without Union government's coercion".

Pointing out that the BJP government in Gujarat had already entered into a dialogue with the business community, the national executive urged state governments to enter into similar talks "so as to remove their misunderstandings and also make amendments in the legislations if any".
Bureau Report