SARVAJAN HITAYA SARVAJAN SUKHAYA-FOR THE GAIN OF THE MANY AND FOR THE WELFARE OF THE MANY
Online edition of India’s National Newspaper
Saturday, Oct 20, 2007
VAT to be imposed in U.P.
Special Correspondent
Mayawati
LUCKNOW: In her first major action after expanding the Cabinet and reshuffling Ministers, Uttar Pradesh Chief Minister Mayawati on Friday decided in principle to impose the Value Added Tax (VAT) in the State.
The decision was taken at a Cabinet meeting presided over by the Chief Minister. The Cabinet authorised the Chief Minister to fix the date from which VAT would become applicable.
Significantly, U.P. is the only State which has not enforced the new tax regime so far and manufacturers and traders were consequently deprived of the benefits of input tax credit. Its impact was also felt on the goods manufactured in the State which were comparatively dearer.
An official statement explained that home manufacturers and traders were losing out in competition with their competitors in other States. There was a likelihood of investors shying away from the State, the statement added.
By taking the decision on VAT, the Chief Minister has made a clear departure from the line pursued by her predecessor Mulayam Singh. Mr. Singh had stonewalled the Union Governmentβs move to bring the State on the VAT table.
Union Finance Minister P. Chidambaram had met the former Chief Minister in Lucknow in 2004 and tried to impress upon him the benefits which would accrue to the State if VAT was imposed. But Mr. Singh refused to toe the Centreβs line and cited opposition from the tradersβ organisations for the decision. He stuck to his stand till May this year when he lost power to Ms. Mayawati.
The Bahujan Samaj Party governmentβs move on VAT now follows the Chief Ministerβs decision to allot the all-important Finance portfolio to one of her most trusted lieutenants, Kamla Kant Gautam, when she reshuffled her pack on Thursday.
Mr. Gautam was among the four new Cabinet Ministers inducted on Wednesday. He became the first Finance Minister of U.P. in the last seven years. So far the Finance portfolio was held by the Chief Minister.
Nand Gopal Gupta Nandi was given the Institutional Finance portfolio, while two other first-time Cabinet Ministers, Chandradev Ram Yadav and Ashok Kumar, were appointed Small Industries, and Land Development and Water Resources Ministers.
Of the four Ministers of State elevated to Cabinet rank, Rangannath Mishra was allotted the Secondary Education portfolio, Badshah Singh Labour and Abdul Mannan Science and Technology. Anant Kumar Mishra continues to hold the Medical and Health portfolio.
In the Cabinet reshuffle, Thakur Jaiveer Singh, who was earlier the Secondary Education Minister, was given the relatively insignificant portfolio of Rural Engineering Services and Agricultural Trade. Ved Ram Bhati was handed the Home Guards portfolio. He was the Labour Minister before the reshuffle.
U.P. to go VAT way
Special Correspondent
| Mayawati reverses Mulayamβs decision |
Finance goes to Kamla Kant Gautam
Strength of Council of Ministers now 54
LUCKNOW: In her first major action after expanding the Cabinet and reshuffling the Ministers, Uttar Pradesh Chief Minister Mayawati on Friday decided in principle to impose Value Added Tax (VAT) in the State.
The decision to impose the new tax structure was taken at a Cabinet meeting presided over by the Chief Minister. The Cabinet authorised the Chief Minister to fix the date from which VAT would become applicable in Uttar Pradesh.
Significantly, U.P. is the only State in the country which has not enforced the new tax regime so far following which the manufacturers and traders were deprived of the benefits of input tax credit. Its impact was also felt on the goods manufactured in the State which were dearer in comparison to the goods produced in other States.
An official statement explained that the home manufacturers and traders were losing out in competition with their colleagues belonging to other States. There was a likelihood of investors shying away from the State, the statement added.
By taking the decision on VAT, the Chief Minister has made a clear departure from the line pursued by her predecessor Mulayam Singh. Mr. Singh had stonewalled the Union Governmentβs move to bring the State on the VAT table.
Mulayam opposed VAT
Union Finance Minister P. Chidambaram had met the former Chief Minister in Lucknow in 2004 and tried to impress upon him the benefits which would accrue to the State if VAT was imposed. But Mr. Singh refused to toe the Centreβs line and cited opposition from the tradersβ organisations for the decision. He stuck to his stand till May this year when he lost power to Ms. Mayawati.
The Bahujan Samaj Party Governmentβs move on VAT now follows the Chief Ministerβs decision to allot the all-important Finance portfolio to one of her most trusted lieutenants, Kamla Kant Gautam, when she reshuffled her pack on Thursday. Mr. Gautam was among the four new Cabinet Ministers inducted on Wednesday. He became the first Finance Minister of U.P. in the last seven years. So far the Finance portfolio was held by the Chief Minister.
Nand Gopal Gupta Nandi was given the Institutional Finance portfolio, while two other first-time Cabinet Ministers, Chandradev Ram Yadav and Ashok Kumar, were appointed Small Industries, and Land Development and Water Resources Ministers respectively.
Of the four Ministers of State elevated to Cabinet rank, Rangannath Mishra was allotted the Secondary Education portfolio, Badshah Singh Labour and Abdul Mannan Science and Technology. Anant Kumar Mishra continues to hold the Medical and Health portfolio.
In the Cabinet reshuffle, Thakur Jaiveer Singh, who was earlier the Secondary Education Minister, was given the relatively insignificant portfolio of Rural Engineering Services and Agricultural Trade. Ved Ram Bhati was handed the Home Guards portfolio. He was the Labour Minister before the reshuffle.
The overall strength of the Mayawati Council of Ministers now has gone up to 54.