Introduction of VAT will not affect retailers: CM

Chennai, Dec 19 (UNI) Tamil Nadu Chief Minister M Karunanidhi today asserted that introduction of Value Added Tax (VAT) system in the state would not affect ''retailers or lead to price rise and warned the trading community against ''indulging in illegal acts'' to protest against VAT regime, coming into force from January 1, 2007.

Accusing AIADMK General Secretary J Jayalalithaa of instigating the traders to protest against VAT, Mr Karunanidhi, in a statement here, said it would be good for the traders and the country, if they desist from indulging in illegal acts at the instigation of the AIADMK leader.

Mr Karunanidhi was reacting to AIADMK General Secretary J Jayalalithaa's demand that the state should abandon its decision to introduce VAT in the interest of retailers and consumers in the state and the agitation announced by the Tamil Nadu Traders Federation, led by T Vellaiayan.

Stating that traders were given enormous concessions, which were not available in any other state in the country, Mr Karunanidhi said no retailer or trader would be affected by introducing VAT in the state.

As essential commodities like rice, pulses and edible oil would continue to be exempted from tax and VAT regime would lead to abolition of additional sales tax and sur-charge, the prices would come down, he added.

The Chief Minister disputed Ms Jayalalithaa's remarks that the DMK government had not consulted the traders before deciding to introduce the new tax system. In the budget itself, it was stated that it had ascertained the views of the trading community in the pre-budget meeting before deciding to introduce VAT.

UNI WS YA KP2153