The Hindu Business Line : Scrap resale tax, says TN chamber

THE Tamil Nadu Chamber of Commerce and Industry, in a pre-budget memorandum submitted to the State Government, has urged withdrawal of resale tax for the benefit of small and medium traders and exemption of jari from sales tax to help saree manufacturers.

Advancing several suggestions for incorporation in the budget, the chamber President, Mr S. Rethinavelu, in a statement here, has pleaded for reintroduction of single point taxation, as the trading community has been disappointed that their justified demand for removal of the levy of resale tax (multipoint tax) has not been conceded.

The levy was being implemented from July 1, 2002 by the State Government, though earlier, for two decades, single point taxation had been the accepted mode of taxation by the ruling parties, he pointed out.

He has called for complete withdrawal of one per cent resale tax, which increased sales tax from eight per cent to 10 per cent and to 12 per cent for several products. The fee payable for sales tax registration and its renewal has been enhanced substantially in addition to several tax measures to garner more tax revenues though revenue through commercial tax contributed more than 70 per cent of total revenue to the State.

He further said that the four per cent sales tax on jari has severely affected production and sale of jari sarees in the State. The sales tax on jari purchased from Gujarat has made the dealers unable to compete with their counterparts in Gujarat. Exemption of jari from sales tax is essential to rejuvenate the ailing jari saree manufacturing units, he urged.

The additional sales tax, surcharge and resale tax should be removed on edible oil as the industry is handicapped on account of heavy tax burden.

He has also pleaded with the Government to classify PVC film as packing material instead of the present classification as plastic product. The Traders Welfare Board should be reconstituted giving representation to traders from all the districts.