Prices will come down, says TN minister

Chennai: Tamil Nadu does not appear to foresee any negative impact owing to the implementation of Goods and Services Tax (GST), contrary to the apprehensions of the Opposition parties and a section of traders.

The new tax regime will see a 14 percent increase in revenue from the base year 2015-16 besides bringing down the prices.

Speaking to reporters here on Saturday, ministers Jayakumar and Veeramani said the GST dispensed the earlier multiple tax regime and introduced uniformity in tax across the nation.

The state government had sought a guarantee as it could not get over '3,000 crore compensation sum from the Centre after TN switched to Value Added Tax (VAT) regimen. “We did not want the state to suffer due to revenue loss because of GST rollout,” commercial taxes minister K.C. Veeramani explained.

“We have taken up awareness programmes to sensitise the people on GST and traders with an annual turnover of Rs 20 lakhs need not pay GST,” Jayakumar added. Allaying the apprehensions of the people that GST would trigger price rise, he said the prices of commodities were expected to decline.

Moreover, as and when the issues crop up, the state government would raise them at the GST Council and ensure the problems are resolved, Jayakumar emphasised.
 
Entertainment tax will be discussed with CM:
On the theatre owners’ concern over 30 per cent Entertainment Tax levied by the State government, Jayakumar said that the issue would be discussed with Chief Minister Edappadi K. Palaniswami and appropriate action would be taken. Normally, the revenue accruing out of the levy of Entertainment Tax goes into the kitty of local bodies, which utilise the sum for local development.

As this does not come under the purview of the GST, the state government could take a call on it, Veeramani said.