Govt exempts four more items from VAT

Chennai, Apr 5 (UNI) After giving exemption on VAT for 27 items regularly used by housewives, common people and farmers in the budget, the Tamil Nadu Government today announced exemption for four more items and also reduced tax on several other goods.

Replying to the debate on the demand for grants for his department in the assembly, Commercial Taxes Minister S N M Ubayadullah announced tax exemptions for clay used for manufacturing bricks, handmade toffees like groundnut rolls and bonemeal.

He said accepting the requests of the salt manufacturers, Chief Minister M Karunanidhi also announced tax exemption for the manufacturers when they sell salt to the industries.

Mr Ubayadullah also announced reduction in tax from 12.5 per cent to four cent for tread rubber used for retreaded tyres and vulcanising rubber, for unbranded footwear costing Rs 200 and above, footwear accessories and for non-woven fabric and goods produced from them.

However, for branded footwear the tax would remain at 12.5 per cent, he added.

He said following repeated pleas from traders, the government had also decided to bring in amendments to the VAT exempting civil contractors from paying two to four per cent compound tax on goods procured from other states.

This would prevent loss of revenue to the government, he added.

UNI