TNCDA thanks CM for VAT

Chennai, Jan 4 (UNI) The Tamil Nadu Chemists and Druggists Association (TNCDA) today thanked Chief Minister M Karunanidhi for introducing VAT from January this year.

Addressing press conference here, Mr B Arumugam and Mr M Arulkumar, President and General Secretary of the TNCDA said they represented the pharmaceutical trade in the state and have accepted the concept of VAT.

They also thanked the government for accepting their plea for availing input tax credit on closing stock as on December 31,2006.

While the changeover to retail price inclusive of all taxes will bring uniformity in prices throughout the country, prices of medicines in Tamil Nadu will come down to the extent of 6.5 per cent both the measures would benifit the consumers.

To a question, they said VAT as a dealer-friendly taxation system, is transparent and ensured accountability at every stage of transaction.

Unlike any other commodity, medicines from manufacturers to the patients pass through several stages in distribution and at every point of sale proper maintenance of records and sales transactions was esential in the interest of the patients and the trade,they added.

Opting for VAT will enable retailers to avail input tax credit without erosion in their margin and also ensure uniform prices to the consumers at the hands of every retailer irrespective of the turnover.

While Tamil Nadu VAT provided option for non-VAT, compounding rate of tax at 0.5 per cent retailers in medicines stand to lose the input tax credit and consequently reduction in the margin provided under DPCO.

They had taken adequate measures to educate the trade and ensure uninterrupted availability of medicines to the consumers during the interim period, they claimed.

UNI