VAT is this ?

VAT is touted as the first step towards rationalization of the indirect taxes regime in India. Its supposed to be in place from 1st April,2005. Atleast that's what the fin min proclaimed in his budget speech. Looks like he is in for a major reality check .... With all BJP ruled states deciding not to toe the 1st April deadline, for whatever reason and a host of other states either downright refusing to join in the party (UP) or having second thoughts (TN), it looks like VAT going live in all states together will be a mere pipe dream. The BJP has hastened to clarify that it is all for VAT, just that it believes the govt. machinery and the nation is not prepared for it. Also there is the small matter of CST. Somehow this just does not gel ... one gets the distinct feeling that the BJP is playing up to its core constituency of traders. I will not call it the bania constituency as the traders per se have opposed the move to VAT, and it would be wrong to single out any single caste/group even if they constitute the majority of traders (that too only in some states). This also seems to be the case in many of the other non BJP states that are opposing VAT. Sadly what is lacking is the political will and statesmanship to resist the pressure of the vote bank politics. Many a great policy/schemes have had their Waterloo due to this shortsighted approach. I can only hope, VAT too does not meet the same fate.

India won the second test match at Eden gardens .....yeeehaaaw!