Tamil Nadu - Tiruchi   

Government hailed for reducing rate of Value Added Tax

Special Correspondent

"It will immensely help the small scale sector"

TIRUCHI : The Tiruchi District Tiny and Small Scale Industries Association (TIDITSSIA) has commended the State Government for presenting a no-new tax budget and also for reducing the rate of value added tax (VAT) from 12.5 per cent to four per cent on many items.

Reacting to state budget presented in the Assembly on Friday, the president of the TIDITTSIA, S. Sridharan said the reduction of VAT for items like medical diagnostic equipment, textile machineries, wire and wire products, unbranded bakery products, coffee powder and masala powder would immensely help the small scale sector.

Welcoming the Government's decision to revive the capital subsidy for the new industrial projects being launched in the industrially backward blocks, he said the TIDITSSIA has been demanding the same for many years.

The decision of the government to give exemption for the first Rs. 10 lakhs for the dealers, who are opting for compounding system of payment of VAT tax, was also a welcome move.

The setting up of special economic zone at Virudhunagar and IT park at Tirunelveli and ship-building units at Ennore and Cuddalore will guarantee lot of business for small scale industries.

The announcements on speeding up the work of allotting adequate land for the expansion of Tiruchi airport would prove a boon to this city.

The Tamil Nadu Traders Federation has welcomed the various trader-friendly announcements made in the state budget.

In a statement, its president, A. K. Hussain and general secretary, V. Govindarajulu said the non-levying of any new tax was the highlight of the budget.

They thanked the government for conceding the demand of the federation by reducing the rate of VAT tax from 12.5 to four per cent for school bags, unbranded butter and ghee.

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