VAT bill introduced in TN house
Chennai, Dec 5 (UNI) Amid stiff opposition and walkout by the AIADMK, the Tamil Nadu Value Added Tax Bill 2006, enabling the state to join VAT regime from January one, 2007, was passed in the Assembly today.
Introducing the Bill in the House, Commercial Taxes Minister S N M Ubayadullah said due to delay in implementation of VAT, the state was receiving only 75 per cent subsidy from the Centre. The state would stand to lose Rs 375 crore due to the delay, he added.
Reiterating that VAT introduction would be beneficial to all traders, he said apprehensions among small traders had been removed.
In fact, all traders were looking forward to implementation now as there would be no surcharge and additional tax under VAT, he added.
The Minister said traders with annual turnover less than Rs ten lakh would be exempted from registration and payment of VAT. Traders whose annual turnover was between Rs ten lakh and Rs 50 lakh could opt to pay compounding tax not exceeding one per cent, he added.
Mr Ubayadullah said all articles that had been exempted from levy of sales tax would continue to be exempted under the VAT system too.
Earlier, C V Shanmugam (AIADMK) said Government should stop the Bill till all concerns on the state's right to tax were addressed.
Stating that VAT would not be beneficial to the poor, traders and the general public, he said prices of essential commodities had shot up recently due to implementation of VAT in other states.
Refuting claims that its non-implementation during the previous AIADMK regime had driven investors to other states and led to revenue loss, Mr Shanmugam said Tamil Nadu earned revenue income of Rs 13,907 crore during 2005 as against Rs 11,760 crore the previous year.
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