Traders assn demands VAT exemption for agro-inputs

Tiruchirapalli, Dec 23 (UNI) Tamil Nadu Agro-Input Traders Association (TAITA) appealed to the state government to give total exemption to agro-inputs from the purview of Value Added Tax (VAT), to be implemented in the state from January one.

In a memorandum to Chief Minister M Karunanidhi, a copy of which was released to the media, here today TAITA state president P Rengasamy said ''if VAT is implemented, this might directly affect the farming community due to extra tax. Fertilizers normally are covered under Essential Commodities Act, 1985 and their maximum retail price is fixed and controlled by the Act''.

He said the Punjab Government, keeping in mind the interests of the farmers, had excluded agro-inputs from the purview of VAT, despite a revenue loss of Rs 120 crore. However, the Punjab Government compensated the loss with Central assistance.

Stating that the Tamil Nadu Government would incur a revenue loss of Rs 60 crore by way of exempting agro-inputs, he said it should give full exemption with the Central assistance.

Mr Rengansamy said there were 11,500 licensed dealers, apart from 6,000 retail outlets in cooperative sector in the state. ''If the government implements VAT, the agro-input traders will be forced to display VAT charges in the fertilizers price list and the extra tax subsequently will be collected from farmers'', he added.

UNI GSM JJ RL PM1208