The Hindu Business Line : TN Bill to repeal Agricultural I-T Act introduced

THE Tamil Nadu Government on Friday introduced a Bill to repeal the Tamil Nadu Agricultural Income-tax Act, 1955, which will exclude planters from paying tax on income from plantation crops.

The move gives effect to the State Government's announcement in the Budget to do away with this tax since the costs of collection have exceeded revenue.

The Act covered crops such as rubber, coffee, tea, cardamom, arecanut, clove and pepper. Non-plantation crops, which had been brought under the purview of this Act in 1958, had been exempted in 1992.

The Finance Minister, Mr C. Ponnaiyan, in the Budget speech had said that the Act would be repealed to support the industry and to save on cost of tax collection.

The fall in plantation products' prices and increasing costs of production had affected revenue. Agricultural I-T had fallen to Rs 1.6 crore in 2002-03 from Rs 39.40 crore in 1997-98. The estimated tax yield for 2003-04 was Rs 1.35 crore against the expenditure of Rs 1.6 crore on tax collection.

More Stories on : Income Tax | Policy | Plantations | Tamil Nadu

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