Implement VAT after discussion in assembly: AIADMK

Puducherry, June 27:he Puducherry unit of the AIADMK today reiterated that the Value Added Tax (VAT) should be implemented in the Union territory only after placing the bill in the legislative assembly following a debate on it.

Talking to newspersons here, AIADMK State Secretary and a MLA A Anbazhagan said in order to bring a uniform taxation all over the country, VAT was being introduced by all other states only after discussions in their respective legislative assemblies.

However, in Puducherry, the administration had promulgated an ordinance in this regard without placing the bill in the recent budget session, he alleged.

It was not known which commodities were being exempted from tax though the administration had announced that 55 items would be exempted, Mr Anbazhagan said and added that every day different sections of traders, including dealers of Indian Made Foreign Liquors (IMFL) were meeting the Chief Minister.

He pointed out that later the traders themselves used to announce that they would be exempted from taxation, which created an impression that the Chief Minister was misusing the VAT system.

The administration in the last budget session had exempted IMFL from sale tax and instead introduced 35 per cent additional excise duty. The item was listed in the VAT with 35 per cent tax, which needed explanation, he added.

UNI