Special Correspondent

CHENNAI: The delay in introducing Value Added Tax in Tamil Nadu is causing concern, the Tamil Nadu Plastics Manufacturers' Association (TAPMA) has said.

The levy of four per cent as an additional surcharge over and above and reduced Customs duty of five per cent would only neutralise the benefits.

Burden on manufacturers

The additional levy would be a burden on manufacturers in Tamil Nadu as VAT had not been introduced, Association general secretary Brij Khandelwal said in a statement issued on Thursday.

The TAPMA also urged the Government to roll back immediately, the levy of entry tax of four per cent on select plastic raw materials, which was a "severe burden" on the industry.

Greeting the Government headed by M. Karunanidhi on assumption of office, Mr. Khandelwal hoped that it would raise the exemption limit for small scale industry as most of the plastic units were in this category.

He suggested that the limit be raised to at least Rs. 3 crore. He wanted the administration to remove resale tax of one per cent.