CDA thanks govt for levying 0.5 per cent on traders

Chennai, Dec 12 (UNI) The Chemists and Druggists Association (CDA) (Retail) Chennai District today thanked the Tamil Nadu Government for its decision to levy 0.5 per cent tax on the traders, whose annual turnover was Rs 50 lakh, under the recently introduced VAT system.

Addressing a press conference here, Association General Secretary N Balaraja said the government, while making provisions for reimbursement of the input tax to the first seller under the VAT system, did not mention anything about the reimbursement of the input tax to the second and third sellers.

He said due to this, both the wholesale and retail pharmaceutical traders would reduce their stock position, which would ultimately lead to shortage of life saving drugs.

He appealed to the government to make necessary arrangements so that the wholesale pharma distributors could collect input tax from the retailers and retailers from the customers.

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