Chennai, Oct. 30
The Tamil Nadu Government has published a copy of the VAT Bill, 2006, on its Web site paving the way for its implementation.
In the draft published on the State Government's official Web site, it has said that the Tamil Nadu General Sales Tax Act, 1959, would be repealed to introduce the Value Added Tax in the State as announced in the Tamil Nadu Assembly. It may be recalled that the Chief Minister, Mr M. Karunanidhi, in the budget for 2006-07 announced that the State would shift to VAT from 2007.
The Bill seeks to give effect to that decision. It may be recalled that the State Government had been concerned over the possible loss in revenue due to the shift to VAT. However, following widespread demand from trade and industry, the Chief Minister had announced that the State would shift to VAT from January 2007.