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Our Bureau

Coimbatore, July 24

The Tamil Nadu Government is likely to accede to the demand by the beedi and cigar manufacturers to exempt them from the State value added tax (VAT), according to the State Commercial Taxes Minister, Mr Ubhayathullah. The Minister, disclosing this to newspersons here, said the formal announcement would be made soon.

He also said that chewing tobacco trade in the State had also made similar demand at today’s meeting.

He assured that his Government would consider the trade’s plea in this regard.

The producers of chewing tobacco and the trade involved in the business, voicing concern over the staggering 69 per cent Central levy, said the 12.5 per cent VAT by the Tamil Nadu Government had further burdened the sector leading to non-processing of about 40,000 tonnes of tobacco worth Rs 400 crore lying in stock as the cumulative 82 per cent of Central and State taxes would render the sector totally unviable.

Representatives of chewing tobacco producers and the trade said that over 60,000 tonnes of chewing tobacco were being produced in the seven districts in the State with Coimbatore and Erode accounting for bulk of this production.

More Stories on : Cigarettes | Taxation | Tamil Nadu

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