Date:21/04/2006 URL: http://www.thehindubusinessline.com/2006/04/21/stories/2006042104182100.htm

Back `TN will lose out without VAT'

Our Bureau

Chennai, April 20

The overwhelming opinion is that value-added tax is necessary and is desirable, according to the Union Finance Minister, Mr P. Chidambaram.

And States such as Tamil Nadu and Uttar Pradesh that do not implement VAT will lose out, he told reporters here on Thursday.His attention was drawn to the manifestos of the AIADMK and the DMK where both parties had expressed doubts over switching to a VAT regime. The DMK is a party to the National Common Minimum Programme and the NCMP talked about VAT, he said. Mr Chidambaram said "it cannot be that all except the two States which have introduced VAT are wrong and only the two States which have not yet introduced VAT are right."