Losses were kept to minimum, says Minister
MADURAI: The State Government wants to keep taxes low and make traders comply voluntarily rather than keeping them high and leave room for tax evasion, Minister for Commercial Taxes, S.N.M. Ubayadullah, has said.
He impressed upon the traders the need to act in accordance with tax laws and urged traders to act as supervisors to ensure compliance.
Mr. Ubayadullah was addressing the inaugural function of ‘Electrix – 2007,’ an all-India electrical and electronics products’ exhibition organised here on Friday.
It was organised by Madurai Electrical Electronics and Machinery Dealers’ Association.
Speaking about the implementation of value added tax (VAT) and subsequent loss of revenue to the State, he said that Tamil Nadu had incurred a loss of around Rs. 500 crore till now and the figure might go up to more than Rs.1,300 crore. The Centre would provide compensation for three years.
For the first year, 75 per cent of the losses would be compensated.
He added that VAT implementation in the State had been very efficient with the losses incurred being the lowest in the country.
“Though we expect growth from August, the Government has to devote attention to this loss of revenue.
At this stage, considering new tax exemptions is not possible. Present your requests during the pre-budget meeting in February ,” said Mr. Ubayadullah.