TASK ACCOMPLISHED: Finance Minister Anbazhagan along with Chief Minister M. Karunanidhi coming to the Assembly to present the 2006-2007 budget on Saturday. — Photo:S. R. Raghunathan

CHENNAI: Tamil Nadu will join the Value Added Taxation regime on January 1, 2007, Finance Minister K. Anbazhagan announced in the Assembly on Saturday.

Presenting a tax-free budget for 2006-07, he noted that the manufacturing and trading community had made repeated representations on the issue. "After examining the matter thoroughly and ascertaining the views of the trading community in the pre-budget meeting held on July 5, 2006, with representatives of manufacturers and traders, this Government has decided to introduce VAT from January 1, 2007," the Minister said.

The State had taken into account the problems faced by small traders. Hence, "traders buying and selling within the State will have a threshold limit of Rs.10 lakh for exemption from registration and payment of tax under the State Act. This is expected to benefit about 45,000 traders in the State," he said.

Since the State was switching over to VAT, Mr. Anbazhagan advised traders to maintain clean books: "a new trader-friendly" Samadhan scheme is being introduced to bring closure to all outstanding arrears of traders. The resale tax, "introduced by the previous government, will be abolished from January 1, 2007."

ST exemption

Also, essential commodities will not be taxed. "I am happy to announce the exemption of sales tax on pulses and oil... This will involve a loss of revenue of about Rs.110 crore per annum."

The Government would establish technical universities on the lines of Anna University, one at Tiruchi and the other at Coimbatore, and a Centre for Educational Research in Madurai Kamarajar University, as part of measures to meet the requirement for specialised higher levels of learning.

The Government would facilitate establishment of dental colleges, nursing colleges and colleges of physiotherapy in rural areas with a view to creating employment opportunities for students of the areas.

In tune with the ruling party's election promise, government medical colleges would be started in districts that did not have them. It would also establish two arts and science colleges at Valparai in Coimbatore district and Mettur in Salem district for the development of educationally backward areas.

Orders were issued to convert courses run on self-supporting basis in Government Engineering and Arts Colleges into regular courses.

The Rajiv Gandhi Institute of Aeronautical Science and Training of Pilots would be established at Sriperumbudur and the State Government approached the Civil Aviation Ministry for this, he said.

A centre for higher studies and research in biotechnology to improve productivity in agriculture and develop new medicine for various diseases would be set up.

Research centre

The Government decided to establish a "Centre for Research on Dravidian Movement" on the Madras University campus to commemorate the 150th anniversary of the university.

In view of the successful implementation of transparent counselling for transfer of government schoolteachers, the Government was considering extension of the system to other departments.

Printer friendly page  
Send this article to Friends by E-Mail