Test Run

The much-hyped VAT regime was supposed to bring uniformity to the tax structure prevailing in different parts of the country. But Orissa has definite reasons to feel deprived, so far as revenue collection is concerned. Lower tax rates in neighbouring states like West Bengal and Andhra Pradesh is certain to divert the local traders' attention to these ready markets. The matter acquires much more importance when the issue encompasses even commodities of daily use, especially foodgrains. But perhaps there is still no justification to specifically accuse the UPA government at the centre for all the discrepancies and loopholes still present in the system. The VAT system in India is still in its formative stage and all the state finance ministers, no matter which political party or coalition they represent, have to act in unison detect and rectify the mistakes. The VAT has been implemented for long term benefits of all concerned and one should not raise a hue and cry if the system does not achieve desired results right from the onset. The ministers should understand that there is no reason why narrow political interests should creep into economics that affect the entire country.