The Tamilnadu Association of Cottage and Tiny Enterprises has appealed to the State Government to exempt micro units from 14.5 per cent Value Added Tax (VAT) on generators.

Association president J. James has said in a release here that industries in the State, especially the micro units, are the worst hit by the long hours of power cut. Unable to continue production, many of them are selling machinery to repay loans or moving out to other jobs.

Others are purchasing generator sets of five KVA to 60 KVA capacity to continue production.

Cottage units that are unable to buy generators individually are joining hands to go in for common generator sets. The State Government has levied 14.5 per cent Value Added Tax on generator sets purchased from dealers.

This increases the cost of the generators.

The micro units do not have Commercial Tax registration because they mainly do job works.

The State Government should provide VAT exemption to the micro units that purchased generator sets from dealers so that more units can go in for generators, he said.

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