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Tamilnadu - Foodgrain merchants' plea on VAT exemption

The Tamil Nadu Foodgrains Merchants Association has urged the Central Government to ensure that all the Value Added Tax (VAT) exemptions provided in Tamil Nadu for essential commodities were retained in the proposed Goods and Services Tax (GST) Act also.



 

With the maximum VAT rate being 14.5 per cent, it sought for fixing the maximum tax rate under GST at 12 per cent. It also called for retaining the State Government's autonomy to revise tax rate of essential commodities.

A delegation led by association President S.P. Jeyapragasam met the Union Minister of State for Finance S.S. Palanimanickam at New Delhi on Friday and submitted a pre-Budget memorandum pressing various demands. Members of the Tamil Nadu Rail Passengers Rights Tribune also submitted a letter urging him to press for making Royapuram as third major railway terminal of Chennai.

The demands include a request to the Central Government to increase the Excise Duty exemption limits for biscuits from the present Rs. 100 per kilogram to Rs. 150 per kilogram to help small and medium enterprises.

Source: The Hindu, India,  dated 05/12/2011

 

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