Imphal, March 31: Even as the State Government had prepared the groundwork for implementation of Value Added Tax (VAT) in Manipur business community in the State had decided to go ahead with the all India bandh tomorrow.

Responding to the all India bandh call to protest implementation of VAT coming into effect tomorrow all the business establishments in Manipur would down shutters tomorrow, conveyed Associated Manipur Chamber of Commerce.

The business/traders community has decided to go ahead with the agitation as appeal for deferment of VAT in the State in a memorandum submitted to the Chief Minister on March 16 by the AMCC had failed to evoke positive response, reminded a statement.

The AMCC sponsored strike is the second of its kind this month.

On the Government side all necessary preparations have been made with the only impediment being presidential assent for implementation of the new tax system in Manipur.

Another hurdle likely to be faced by the State authorities concern lack of technical infrastructure without which implementation of VAT system could proof an exercise in futility, mooted press sources.

Manipur Legislative Assembly has passed the Manipur VAT Bill 2004 on December 22 and the same forwarded to the President of India for assent as the Governor had cited Central Government liabilities in enacting the Bill.

Even as informed sources conveyed of the Presidential assent yet to be officially received by the State Govt Manipur VAT Rules 2005 has been amended to clear the path for introduction of the new tax system.

Due to necessity of State Cabinet's approval as well as consent of State Assembly its actual implementation could materialise only after convening the House session on the issue, pointed out the source.

However, as the State assembly had passed the Bill in the previous session the VAT implementation may be effected with a Governor's Ordinance and approval of the House at a convenient period, it explained.

Despite relentless initiatives of the O Ibobi led SPF Government to ensure implementation of VAT lack of public knowledge on contents of the new tax system is still a major hurdle which the Government had to address.

Contrary to the previous regime of levying tax on goods based on first or last point of sale VAT envisages taxation in phase-wise sale of goods, said experts who opined that in addition to checking tax evasion and levying excess taxes only Government and dealers stand to benefit once VAT system comes into force.

With VAT system necessitating computerisation and e-network connectivity with all the taxation offices in Manipur districts the matter is not out of complexities as personnel of TATA Consultant are only in the nascent stage of inter-linking the offices.

The Manipur Govt, it may be mentioned, had also earmarked Rs 18 lakhs for renovation of existing taxation offices in the district headquarters.

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