TN Govt to organise awareness camps on VAT on December 27

Chennai, Dec 23 (UNI) In a bid to create awareness and clear the clouds of confusion among the people and traders over the 'impact' on implementation of the Value Added Tax (VAT) in the State, the Tamil Nadu Government would organise awareness camps throughout the State on December 27.

The Chief Secretary L K Tripathi told newspersons here today that the awareness programme to be held in all the district headquarters, would dispel the doubts of traders and the public on the nature and salient features of VAT, which would come into force from January one.

''With the implementation of the VAT regime, a system of uniform taxation would be in place throughout the country'', he added.

The system was first introduced in Haryana and was adopted in 24 States in the country.

The new system would spare the traders the trouble of remitting surcharge, resale and additional taxes. In Tamil Nadu taxes vary from two to 20 per cent. Under VAT regime, the taxation would only be of three types viz,. 1, 4, and 12.5 per cent, he added.

Mr Tripathi said a trader whose annual turnover was not more than Rs 50 lakh could pay a compounding tax of half per cent, if he so desired, as against one per cent in some states.

Traders, whose annual sales turnover was less than Rs ten lakh need not register under the VAT. For traders, who were engaged in inter-State trade, the upper limit would be Rs five lakh. This would benefit 30,000 traders.

The tax-exempted commodities like rice, cooking oil and others would continue to be under the exempted list.

He said the State would incur a loss of about Rs 3000 crore as a result of the introduction of VAT. However, it would be compensated by the Central Government in a staggered manner.

The small traders have been reassured that they would not be affected by the new tax regime. Prices of essential commodities are also likely to come down as a result of the new system, officials said.

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