Our Staff Reporter
Hosur: Industrialists in Hosur have urged the State Government to implement Value Added Tax. With the BJP-ruled states deciding to implement the Value Added Tax regime with effect from April 1, 2006, Tamil Nadu and Uttar Pradesh are the two states that still remain out of the regime. While the manufacturing sector is for the allround implementation of VAT the trading community is opposed to it. Non-implementation of VAT would only lead to flight of commerce to other States leading to loss of revenue to the State, the industrialists said. "Industries prefer to procure their requirement from outside the state by paying 4 per cent Central sales tax than paying the normal rate of duty of 12 per cent within the State and in the process the tax that should normally accrue to the state is being diverted to adjoining states. With elections in Tamil Nadu scheduled for May 8 at least the newly-elected Government should ensure that VAT is implemented in the State," according to the president of the Krishnagiri District Small and Tiny Industries Association G.S. Ganesh. Industrialists are sore that major political parties in the state have not mentioned about the implementation of VAT in their election manifestos.