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Puducherry permitted to promulgate VAT ordinance

Special Correspondent

Actual date of enforcement to be fixed soon

Puducherry: The Union Home Ministry has permitted the Government to promulgate an ordinance to enforce the Value-Added Tax (VAT) in Puducherry with effect from the date to be fixed soon.

An official source said here on Friday that the Centre's communication approving of the request was received on Thursday night. The actual date of implementation would be decided by the Government soon, and would be mentioned in the ordinance. A gazette notification would also be published in the next stage, the source said.

Confirming that the new tax system was not implemented on Friday, as the Centre's communication was available only on Thursday night, the source said that the date and other related formalities would be decided shortly.

Earlier, Communist Party of India (CPI) legislator R. Viswanathan told reporters that the Government should not implement the VAT through an ordinance. He said that actually there was a promise in the recent budget session that a Bill would be passed to enforce the tax.

But nothing was done and no bill was introduced.

`It will surprise'

Mr. Viswanathan said that if ordinance was enforced, it would only take merchants, traders and industrialists by surprise. There should be a joint meeting of leaders of political parties, traders and other sections to bring to focus the features of the VAT.

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