New Delhi, July 07: In an apparent climb-down from its earlier stance, the empowered committee on Value-Added Tax today gave in to the Centre's plan for a nationwide VAT implementation, instead of a patchwork, after arriving at a national consensus with political parties expected within few months. "It's a very major decision for the country as a whole. When we introduce it, we want the acceptance to be total," VAT panel chairman Asim Dasgupta said after a meeting here.

The move comes as a climb-down from the panel's previous stance that vat could be introduced in about 11 states, accounting for two-thirds of India's trade and industry, at the first stage.
The states' request for a partial introduction of VAT was outrightly rejected by the Centre with finance minister Jaswant Singh disfavouring a "patchwork" approach in phasing out Central Sales Tax or doling out relief to states which expected revenue loss after vat.

Declining to set any new timeframe as done before, Dasgupta said the VAT panel would meet the finance minister within a fortnight to set the date of meeting with major political parties.

"The timing and details of VAT implementation will be worked out only after the discussion with political parties," he said.
Dasgupta claimed that 22 states had sent in their VAT bills to the Centre for President's assent. "But there was requirement for some amendments," he admitted.

Although seven states were ready with vat bills, others backed out after the Centre pressed for a holistic approach.
Bureau Report