No fresh taxes in Tamil Nadu Budget

No fresh taxes in Tamil Nadu Budget

Laced with a slew of tax concessions and proposals to increase the pace of industrialisation in the state, Tamil Nadu finance minister K Anbazhagan on Thursday, presented a populist Budget, which did not contain any fresh taxation proposals.

He also left uncovered a revenue deficit of Rs 2.19 crore, on the plea that it would be covered by better tax collections. In a bid to appease the women votersa, Anbazhagan waived the sales tax on magalsutras used by Hindus, Muslims and Christians. He also announced setting up of farmers self-help groups, in which members of primary agricultural co-operatives would be the members. Interest rate on farm loans have been slashed from 5% to 4%.

The minister announced a slash in the sales tax on several farmers’ produce like jatropha, jaggery and coconut products.

There is a waiver in special fee collected from students by government and government aided schools. He proposed to set up four special economic zones at Gangaikondan, Cheyyar, Perunthurai and Ranipet, each dedicated to transport engineering goods, automobile and auto spare parts, engineering goods and leather. He said the government proposed to disburse new crop loans to the tune of Rs 1,500 crore in 2008-09.