The Hindu Business Line : Siema urges TN to introduce VAT

The scenario NLC was earlier supplying Leco coke used by foundries, brick kilns, sugar mills, paper mills, dyeing and bleaching units. The advantages of using this coke was that it was eco friendly and gave more calories of heat than raw wood and charcoal.

Coimbatore , June 2

The Southern India Engineering Manufacturers' Association (Siema), Coimbatore has urged the Tamil Nadu Chief Minister, Mr M. Karunanidhi, to take up with the public sector Neyveli Lignite Corporation (NLC), the question of resumption of production of Leco coke used by various industries.

It has also sought introduction of VAT in Tamil Nadu as it would help the industries to avail themselves of input tax credit that would reduce cost of production.

In a memorandum to the Chief Minister, the Vice-President of Siema Mr C. R. Shanmughasundaram, said that NLC was earlier supplying Leco coke used by foundries, brick kilns, sugar mills, paper mills, dyeing and bleaching units. He said the advantages of using this coke was that it was eco friendly and it gave more calories of heat than raw wood and charcoal. Felling of trees also could be avoided if this coke was available in sufficient quantity to meet the needs of user industries.

However, production of leco coke was discontinued by the NLC and he wanted the Government to take up the question of its production with NLC.

He pointed out that most of the States had implemented VAT and wanted Tamil Nadu Government also to implement it to help the manufacturers of motors and pumps to avail themselves of input tax credit to reduce the cost of production. He wanted all monoblock and submersible pumpsets up to 15 HP used by the farmers be charged sales tax at the VAT rate of 4 per cent.

The Siema Vice-President said that while the Government had removed entry tax on iron items, it had left major raw materials required by the motor and pump industry such as stainless steel flats, rounds, SS sheets etc.

0Since the industry procured these products in a large volume from other States, he wanted all of them be exempted from the entry tax levy.