Staff Reporter

COIMBATORE: The Southern India Engineering Manufacturers' Association has appealed to the State Government to implement Value Added Tax (VAT).

In a memorandum to the Chief Minister, the association vice-president, C.R. Shanmughasundaram, said that implementation of the VAT would enable pump and motor manufacturers to avail themselves of input tax credit and thus reduce the cost of production. He sought reduction of Sales Tax for all monoblock and submersible pumpsets to four per cent.

The Sales Tax on motors was now 12.6 per cent and on monoblocks and submersible pumpsets 10.5 per cent (except for three and five HP pumpsets used for agricultural purposes).

The pumpset manufacturers here used large quantities of stainless steel flats, rounds and SS sheets and a substantial quantity was purchased from other States. He said these raw materials should be exempted from Entry Tax. Mr. Shanmughasundaram said that the foundry units, which manufactured castings for the pumpset industry, used to buy LECO coke from Neyveli Lignite Corporation.

This coke was eco-friendly, gave more calories of heat and saved felling of trees. However, the production of LECO coke was discontinued now. He appealed to the Government to take up the issue with the Corporation to restart production of the LECO coke.

The association appealed to the Chief Minister to do the needful on these issues for the benefit of pumpset manufacturers, foundries and engineering component manufacturers.