TN chamber asks CM to implement Vat on time

Chennai, March 21 | Updated: Mar 22 2005, 05:30am hrs
The Tamil Nadu Chambers of Commerce and Industry has appealed to chief minister J Jayalalithaa to implement Vat from April 1 since all the political parties in the state supported and welcomed the new tax system.

S Rethinavelu, president of the Chamber said, The entire trade and industrial sector in Tamil Nadu eagerly expect implementation of the new and progressive tax system in the state. The state government should not take into consideration the baseless opposition without any rhyme or reason entertained by one or two individuals in the state.

He said the anomaly of certain products exempted from tax or attracting only 4% tax at present becoming liable for 12.5% tax under Vat, as items not specified in any of the schedules, could be set right by bringing such unspecified items under 4% tax bracket in Tamil Nadu and thus lead other states in this matter.

Tamil Nadu could fix the threshold limit for Vat at Rs 10 lakh, as some other states have done. Mr Rethinavelu said the 4% tax on unspecified items and a higher threshold limit would prevent any trade and industrial activity in the state being adversely affected. Tax revenue of the government would increase.