The Hindu Business Line : TN trade, industry bodies want quick shift to VAT

Reacting to the Finance Minister, Mr C. Ponnaiyan's budget announcement that the Government would implement VAT only after generating broad consensus, traders and manufacturers have urged that Tamil Nadu shift over to the VAT system from April 1. The State would be adversely affected if there is a delay in shifting to VAT, they have said.

According to the Madurai Oil and Oil Seeds Association, the VAT Bill should be introduced without further delay to enable shift to the VAT system from April.

The association's Secretary, Mr V. Krishnamurthy, said that the traders had hoped for a firm commitment from the State Government to shift to VAT. But the Finance Minister's announcement that a final decision would be taken only after more discussions had demoralised the traders.

According to the Tamil Nadu Chamber of Commerce and Industry (TNCCI), the tax-free budget does not have any schemes to enthuse trade and industry, which find it a disappointing budget.

Trade and industry in the State would be badly affected if VAT were not implemented along with the neighbouring States.

Irrespective of the date of implementation of VAT, the State Government could at least table the Bill to give those concerned the opportunity to understand its provisions, TNCCI said.

The Hindustan Chamber of Commerce has said that the possible delay in implementing VAT was disappointing. It has welcomed the budget announcements on infrastructure development and support to social issues.

The Madras Chamber of Commerce and Industry has welcomed the proposal to extensively debate the shift to VAT and said that it looked forward to a healthy debate and early resolution for its introduction.

It welcomed the fiscal reform measures and the proposals for the development of agriculture and allocation to infrastructure and social sectors.

The Southern India Chamber of Commerce and Industry has said that the industry feels that the VAT should be implemented from April 1 and the necessary announcement be made at the earliest.

The Federation of Indian Chambers of Commerce and Industry (Tamil Nadu State Council) said that if the State Government had expressed firm commitment on implementing VAT it would have boosted the confidence of trade and industry. The State cannot afford to remain without shifting to VAT while its neighbours adopt it.

The Confederation of Indian Industry urged the State Government to implement VAT from April 1.

According to the CII, this is an investor friendly budget, which focuses on infrastructure development, ports modernisation and development of industry including the textile sector and small and medium enterprises.

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