Reduction in Value Added Tax welcomed !!

The Planters' Association of Tamil Nadu has welcomed the proposed reduction in Value Added Tax (VAT) on unbranded coffee and chicory announced in the Tamil Nadu budget.

In a release, its chairman, T. Jayaram, said that the proposed reduction of the tax from 12.5 per cent to 4 per cent was a "welcome relief, though this concession should have been extended to branded coffee and chicory too."

Mr. Jayaram expressed disappointment that the budget had not addressed issues such as extending concession rate of 1 per cent VAT for teas sold through auction centres in the State.

Policy decisions were needed to allow diversification of crops in plantations through suitable amendments to the Tamil Nadu Land Reforts Act, 1961. "These issues need the immediate attention of the Government to sustain the viability and long-term interest of the plantation industry," he said.