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TN Chamber seeks tax waiver for fund starved commercial establishments

L N Revathy Coimbatore | Updated on August 11, 2020 Published on August 11, 2020

The Tamil Nadu Chamber of Commerce and Industry, Madurai has appealed to the State Chief Minister to waive the property tax and other taxes payable by shopping malls, marriage halls, theatres and lodges for the first half of the current fiscal, as lockdown crippled the functioning of such establishments-- from late March till date.

The revenues have remained nil, yet the owners are forced to take care of recurring expenses like payment of wages to employees, remitting electricity dues, interest on loan availed from banks and other financial institutions and such other commitments. Under the circumstance, the government should consider to waive statutory commitments such as property tax, drainage and water tax and other periodical fees for the first six months, besides considering to allow them to resume operations from September 1. Many of them are on them are on the verge of closure, having sustained huge investment loss, said N Jegatheesan, President, TN Chamber

Besides lodges, shopping malls and cinema theatres, HT (High Tension) consumers of power (using more than 112 KVA) seem to be caught between TNERC and Tangedco, forced to remit 90 per cent of the Fixed Demand Charges (FDC), even though they (HT consumers) had not consumed any power during the lockdown.

While Tamilnadu Electricity Regulatory Commission (TNERC) ordered payment of 20 per cent of FDC vide a petition, TANGEDCO appealed against the TNERC order, obtained a stay from the Electricity Tribunal and is now forcing payment of FDC every month to avert disconnection.

This is adding to the woes of the establishments/industry, the Chamber president said, appealing for immediate intervention and suitable relief.

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Published on August 11, 2020
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