Minister Carefulness Against Bill-Less Trading

Coimbatore: In order to help the trade and industry, the Tamil Nadu Government had in the 2007-08 Budget offered sales tax relief for 61 specific products contrary to the Centre''s VAT guidelines. According to the Tamil Nadu Commercial Taxes Minister, Mr M. Ubhayathullah, 30 goods were freed from VAT, while the rate on another 31 items was cut down from 12.5 per cent to 4 per cent. Mr Ubhayathullah cautioned against bill-less trade urging the Government chose to lower the VAT rate on the belief and also on the assurances from the trade that it will bring about higher tax compliance. But some traders continued with bill-less trading, betraying the Government''s faith on offering moderate tax regime and affecting the smooth implementation of VAT. Coimbatore contributes normally 10 per cent of Tamil Nadu''s total revenue from commercial taxes.

As against the State''s total revenue of Rs 19,817 crore collected in 2006-07, the Coimbatore division contributed Rs 1,267 crore. The division''s tax earning during April-June 2007 was Rs 417 crore as against the State''s overall tax collection of Rs 4,262 crore. The cumulative tax collection displayed a healthy 20 per cent annual growth despite the variations in the month-wise revenue. But the tax collection from Coimbatore has for the first time showed a negative growth of Rs 4 crore during June 2007 when the total collection decline to Rs 134 crore compared with June 2006 revenue of Rs 138 crore.