Lucknow, Dec 31: Amid opposition from a section of traders’ organisations, Value Added Tax (VAT) will be effective from tomorrow, in Uttar Pradesh.

The State Government has issued an ordinance in this regard, after it had decided to implement the new tax system in October.

Uttar Pradesh is the only state left to implement VAT.

In the absence of the VAT regime, manufacturers and traders were unable to take benefit of Input Tax Credit, resulting into higher cost of goods as compared to other states.

Meanwhile, Uttar Pradesh Vyapar Mandal and the transport associations have called a state-wide shutdown tomorrow to protest against the implementation of VAT in the state.

As per the tax reforms announced by Union Finance Minister P Chidambaram on his 2004 budget speech, all states were to implement VAT from April 2005. (ANI)