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Our Correspondent

30 other States and Union Territories have introduced VAT with no opposition from small traders

MR S. RETHINAVELLU

Madurai , June 21

Perturbed by the reluctance of the State Government to implement the Value Added Tax (VAT), the Tamilnadu Chamber of Commerce and Industry here has urged the Chief Minister, Mr M. Karunanidhi, to initiate interaction with trade representatives to chalk out a roadmap for implementation of VAT without any delay.

`Ill founded'

The chamber President, Mr S. Rethinavelu, said that the expression of reluctance to implement VAT by the State Electricity and Rural Industries Minister, Mr Arcot N. Veerasamy, at a seminar recently, had belied the hopes and expectations of all sections of trade and industry. In a statement here, he said that the reason advanced by the Minister that small traders were opposing VAT introduction was ill founded.

He pointed out that 30 other States and Union Territories have introduced VAT with no opposition including from small traders.

Small traders were opposed to VAT in the State initially only because they were oblivious of its benefits. However, when it became clear to them that the tax exemption limit would be enhanced and traders with an annual turnover of up to Rs 50 lakh would be given an option either to come under VAT or pay 0.25 per cent compounding tax, they welcomed it, Mr Rethinavelu said.

Debilitating impact

Drawing attention to the Union Finance Minister Mr P. Chidambaram's statement during the recent election campaign that non-implementation of VAT had a debilitating impact on trade and industry, Mr Rethinavelu pointed to the flight of trade and industry to neighbouring States.

More Stories on : Taxation | Tamil Nadu | Industry Associations

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