CHENNAI: With a new regime in Tamil Nadu set to assume charge on Saturday, trade and industry is busy giving shape to its wish list to be placed before the dispensation.

They might represent different interests, but with regard to the tasks before the new government in their perspective, introduction of Value-Added Tax emerges as the least common denominator that binds leading chambers of commerce and industry.

The case of states not embracing VAT is not like an oasis in the desert, but a desert surrounded by oasis, a leader of Federation of Indian Chambers of Commerce and Industries was heard telling its Tamil Nadu State Council meeting here on Friday. Underlying the need to impress upon the State Government the significance of introducing VAT, he said a meeting with the commercial tax authorities on the issue would be convened soon. Tamil Nadu, Uttar Pradesh and Pondicherry are the only ones to stick to the State sales tax regime.

Other leading industry bodies such as the Confederation of Indian Industry had listed a switch to VAT, on a priority basis, as one of their key expectations in the run-up to the elections. VAT implementation, sources in Southern India Chamber of Commerce and Industry point out, would take the lead in its list of tasks, before the new government, that it would be releasing in a couple of days.

Presumably the opposition from a section of traders to VAT was the reason. Sources in industry say the reservations against VAT stems from the apprehension over maintaining accounts, which is a pre-requisite under the new structure of calculating tax.

But the emergence of the Congress as a key player in the election, they add, may help push the DMK government implement VAT as soon as possible.

While congratulating the DMK president and Chief Minister-designate M. Karunanidhi, the Chairman of All India Manufacturer's Organisation (Tamil Nadu) K.E. Ragunaathan said non-introduction of VAT in the State had put most of the companies to disadvantage. "We hope our new CM will implement VAT at the earliest ... "

The manufacturing sector body hoped the State would take the lead in provision of better infrastructure, best healthcare and lay thrust on developing renewable energy sector and tourism.

The AIMO also thanked the outgoing Chief Minister Jayalalithaa for her best efforts in the interest of industry.

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