TAMIL NADU

Sops must continue, say merchants

The Tamil Nadu Foodgrains Merchants Association has said that tax exemptions and concessional rates given for essential commodities must be retained even after the implementation of Goods and Services Tax (GST).

An association delegation led by its president S.P. Jeyapragasam met Minister for Commercial Taxes S.N.M. Ubayadullah during his visit to the city on Sunday and presented a memorandum pressing various demands on the GST.

Union Finance Minister Pranab Mukherjee has announced that the GST would be implemented across the country from April 1, 2011.

While the rate of present value added tax (VAT) was 12.5 per cent, the rates proposed under GST was 12 per cent, 16 per cent and 20 per cent.

The association also requested the State Government to impress upon the Centre to reduce the tax rates in the GST as the high levels would lead to large-scale tax evasion by unscrupulous traders.



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