Friday, January 14 2005 20:31 Hrs (IST) - World Time -

Kolkata: Former West Bengal Finance Minister and noted economist Dr Ashok Mitra today (Jan 14, 2005) strongly protested the Value Added Tax (VAT) and called for a 'movement' to stall its implementation scheduled on April 1, 2005.

''The implementation of VAT replacing sales tax would seriously affect the economic health of the States and have serious repercussions among the masses. There needs to be a movement against its implementation,'' Mitra told a press conference in Kolkata.

The former Minister, who held the finance portfolio in the Jyoti Basu Cabinet, termed the move to implement the new tax regime as ''unconstitutional'' and aimed at ''usurping more financial power by the Centre.

''The right to impose sales tax has been granted to the States under Article 246 of the Constitution. Neither the Centre nor any State Government has the power to abolish this right without amending the Constitution. The initiative of the Union Government to do away with sales tax is therefore illegal and unconstitutional,'' Mitra, who was flanked by former MP and city Mayor Kamal Basu and a few scholars, said.

Stating that they were holding ''discussions at various levels in political and administrative circles,'' he said ''we want the VAT implementation be stalled. We may even take recourse to judiciary as the last resort''.

He, however, evaded a direct reply when pointed out that his successor Ashim Dasgupta was heading the State Finance Ministers' committee formed on VAT and was actively promoting the cause. ''Its upto him (Dasgupta) what he will do. I can only express my views''.