Monteks word of caution

New Delhi, March 30 | Updated: Mar 31 2005, 05:30am hrs
Planning Commission on Wednesday cautioned that states which do not implement Vat will lose out on both domestic and foreign investments.

Vat is a more rational system. States that dont adopt Vat would, in fact, be imposing a cost on their own producers, Planning Commission deputy chairman Montek Singh Ahluwalia told PTI.

I can assure that both international and domestic investors setting up new plants, prefer to set them up in states that have Vat than those who dont, he added.

I am happy it has been approved by a large number of states and economic compulsions will encourage other states to adopt it, he said.

PTI