Jaya demands TN Govt to abolish VAT

Chennai, Dec 19 (UNI) Former Tamil Nadu Chief Minister and AIADMK General Secretary J Jayalalithaa today demanded that the DMK Government abandon its move to introduce Value Added Tax (VAT) system in the state from January one, 2007.

Describing VAT as a ''foreign culture'', Ms Jayalalalithaa, in a statement here, said the State Government should desist from implementing the new tax system as it would lead to a revenue loss of Rs 5,000 crore to the state and result in rise in prices.

Besides paving way for rise in prices of all commodities because of rise in tax from four per cent to 12.5 per cent, the new tax system would also crush retail trade, which was considered as the backbone of the trading community, she added.

Pointing out that there were apprehensions that VAT would lead to multi-point taxation, would result in levy tax on goods, which were exempted from taxation, increase tax on certain items from four to 12.5 per cent and lead to problems in the ''set off'' procedure, she said as the apprehensions were genuine, the DMK government should stop implementing VAT.

Stating the DMK, in its election manifesto had clearly said that it would not implement VAT without properly examining the implications as there were apprehensions among the traders, she wanted to know the steps taken by the state Government in the last seven months to allay the apprehensions.

After failing to convene an all party meeting or a meeting of traders, on what basis the DMK Government was implementing VAT, she asked.

More UNI WS KVV PA RK1345