Lucknow, Jan 1: Amid opposition from a section of traders’ organisations, Uttar Pradesh is all set to implement Value Added Tax (VAT) from today.

State Governor T V Rajeswar issue an ordinance today, for implementation of VAT in the state.

In the wake of threats from various traders' organisations to protest the imposition of VAT, the State Government has decided to invoke Essential Services Maintenance Act (ESMA).

With Uttar Pradesh deciding to implement VAT, this tax system has now been adopted across the country.

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 today continued their four-day long hunger strike to protest VAT.

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)