The Uttar Pradesh government on Thursday deferred the implementation of  the new value added tax system to which the state was to switch over with effect from April 1.

A decision to this effect was taken at a meeting of the state cabinet, which also authorised Chief Minister Mayawati to take further decision on the VAT issue.

"For the time being we have put it on hold, at least until April 8, when the central empowered committee on VAT meets in New Delhi," the state's Institutional Finance Minister Rajesh Agarwal said at a press conference. To be attended by finance ministers of all states, the meeting will be presided over by Union Finance Minister Jaswant Singh.

Agarwal clarified that the state government was fully geared up to implement VAT from April 1. "We were forced to give a second thought once it was clear that many neighbouring states have not so far declared their stand on VAT," he said.

Moreover, implementation of VAT in UP in isolation would have no meaning if its neighbouring states did not implement it, the minister added.

The state government, has indirectly given more time to traders' organisations which have sought some more time to go through VAT, said Agarwal.

Loud protests against VAT have already been witnessed throughout the state while another statewide band is proposed on March 31.