The implementation of the country-wide value-added tax regime has finally been put to rest for this fiscal, with the empowered committee of state finance ministers having decided not to meet till they discuss the issue with Union Finance Minister Jaswant Singh.

According to state government officials, the empowered committee have interpreted Singh's recent statement on chalking out a "new roadmap" for the implementation of VAT as an indication that the Centre wants to retrace the entire build-up to its implementation.

This may include redrafting the state VAT bills in consonance with the agreed formula on rates, classifications and exemptions.

State government officials said the Centre had pushed back the schedule despite the states' efforts to implement the tax.

The Centre had put on hold its plans to advertise details about the new regime as part of an awareness campaign planned by it, officials said.

Last week, the Centre said it had decided to draw up a new roadmap for the implementation of VAT in the country, making it almost certain that the revised June 1 deadline went for a toss.

With only West Bengal sending the draft amendments to its VAT Bill, the finance ministry said a roadmap would be drawn for the implementation of the tax in consultation with the political parties and the empowered committee of state finance ministers.

The finance ministry has reiterated that the system will be implemented "only after full preparation" to enable all states to reap the "full benefits" of the new tax. Singh had said patchwork implementation of VAT would not be tolerated.

Originally, VAT was to be introduced by all states from April 1, 2001, but was deferred thrice, because many states were not ready with their necessary legislation.

The empowered committee chairman and West Bengal Finance Minister Asim Dasgupta had claimed, after the committee's last meeting, that 11 states were ready with their legislation and would be sending the proposals to the Centre for speedy presidential assent.

Finding that several section of dealers and traders had expressed concern over various aspects of VAT, the statement called for a consensus and a higher awareness in the states. The finance ministry said this was essential for bringing about uniformity in the country.

VAT's the problem

The Centre has pushed back the schedule despite efforts by states to implement VAT.

The Centre has put on hold plans to advertise the details about the new regime as part of an awareness campaign planned by it.

Only West Bengal has sent the draft amendments to its VAT Bill.

The finance ministry has reiterated that the system will be implemented "only after full preparation" to enable all states to reap "full benefits" of the new tax regime.