Industry & Economy
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Taxation
Trade plea for early VAT implementation
Our Correspondent
Madurai
,
July 8
TRADE and industry circles here have appealed to the Chief Minister to introduce value added tax (VAT) system in the State, to avoid flight of trade and industry to neighbouring States.
The Tamil Nadu Chamber of Commerce and Industry, in a release here, has said that reports confirmed increased tax revenue to most of the States that have adopted VAT system by 28-30 per cent.
It has, however, pointed out that central sales tax (CST) paid on inter-State purchases cannot be set off under VAT and the Central Government, on the assumption of a huge pay out as compensation to States to sustain any revenue loss opted for its withdrawal in three years.
The Madurai District Tiny and Small Scale Industries Association, in a release to the press, has said that value added tax system since its implementation has shown a salutary effect on prices and the consumers have been able to reap the benefits within three months.
While traders in other States have started enjoying the fruits, those in Tamil Nadu face the threat of emigration of trade to other States.
"The small-scale sector, already undergoing agony, will be left in the lurch if the implementation of VAT is procrastinated," it said.
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