Pondy to implement VAT from June 1

Puducherry, Mar 28 (UNI) The Puducherry administration would implement Value Added Tax (VAT) in the Union Territory from June 1 this year, Chief Minister N Rangasamy announced today.

Presenting the Annual Budget for 2007-08 in the Assembly here, the Chief Minister said the VAT was introduced in all other states and shouldbe introduced in Puducherry too.

The government had decided to implement VAT from June 1, he said.

The commercial tax deparment would render advice and all assistance during April and May to the traders and industrialists to switch over to the VAT.

The administration propose to abolish the existing sale tax on IMFL and Beer and compensate the resultant revenue loss in the form of additional excise duty to be collected by the excise departments, he said.

In order to encourage export of Beer and IMFL, the administration propose to reduce the export fee on Beer from 75 paise to 50 paise per litre, the chiefminister said.

The export fee on IMFL would also be reduced from Re one to 75 paise per bulk litre, he added.

UNI