Puducherry: The administration will implement Value Added Tax (VAT) from July 1 in the Union Territory, and an ordinance enforcing the new tax regime has been issued in this regard on Saturday, according to Chief Minister N. Rangasamy.

He told presspersons that when all neighbouring States had already adopted VAT, Puducherry could not lag behind. It was announced in the recent budget session of the Assembly that VAT would come into force on June 1. But the administration felt that at least one month's time was needed for traders and merchants to switch over to the new tax regime to acquaint themselves with its various statutory features. Hence, it was decided to enforce VAT on July l. The officials of the Commercial Taxes Department would furnish all details needed by the tax payers. A help-desk had already been set up in the department. Mr. Rangasamy appealed to the merchants and others covered by the VAT to register themselves under the new system and extend full cooperation to the administration.

Presently Puducherry was earning Rs.365 crore annually through sales tax. Around 12,000 merchants and others were under the tax net here. He said that main reason for adoption of the VAT was that the Union Territory should fall in line with other States without remaining an exception.

Commissioner of Commercial Taxes M. Rajasekar was also present.

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