Chennai, Aug 30 (Calcutta Tube) The implementation of value added tax (VAT) regime in Tamil Nadu by the DMK government from 2007 onwards has resulted in slower growth in commercial taxes revenue, AIADMK General Secretary J. Jayalalithaa said here Monday.
‘The state’s commercial tax revenue went up to Rs.16,615 crore in 2005-06 up from around Rs.8,000 crore in 2001-02, more than 100 percent growth. The growth rate has come down to 50 percent during DMK’s regime at Rs.24,819 crore during 2009-10,’ she said.
‘The central government is yet to compensate the state to the tune of Rs.3,500 crore towards tax loss on implementation of VAT.’
According to her, the state lost its power to levy taxes with the implementation of VAT in 2007.
Jayalalithaa ridiculed the resolution passed by the DMK members of parliament at their meeting recently opposing the implementation of the Goods and Services Tax (GST)
She said the decision to implement GST within three years of introducing VAT was taken long back. The DMK government by implementing VAT in the state has in fact given its consent for GST.