Cost of mobiles, DVDs, LED/LCD to go up
 

The state government on Monday announced revision of sales tax on several items to mobilise an additional revenues of Rs.3900 crores per annum.

An official release said that as the earlier government had left a huge debt of over `1 lakh crore, it became imperative now to mobilise additional resources to adhere to the fiscal norms and also to implement the new welfare schemes.

“Therefore, the government has decided to take various revenue augmentation measures to increase the revenue resources. Revision of sales tax has been identified as one of the possible sources and accordingly, the government has taken the decision and issued the notification today to make certain changes in the sales tax rates,” the release said.

As per the notification, the value added tax (VAT) on the commodities charged at four per cent has been increased to five per cent.

Agricultural implements will continue to be taxed at four per cent.

The VAT on the commodities charged at 12.5 per cent has been increased to 14.5 per cent in order to generate additional resources. Textile and textile products, which were earlier exempted, will be brought under 5 per cent tax, while tobacco and tobacco products which are construed to be ‘negative’ goods will be taken out of the VAT tax rate of 12.5 percent and included in the Schedule II as non-VAT commodities and taxed at 20 per cent, the notification said.

Tax on LCD panels, LED panels, DVDs/CD, mobile phones, I-pod, I-phone and parts thereof, cellular telephones (mobile phones), Ipod, I-phone is increased to 14.5 per cent from four per cent.

“The registration fees on agreements relating to deposit of title deeds, lease deeds, instrument of power of attorney to sell immovable properties are also revised upwards, which is expected to generate an additional revenue of `300 crores per annum,” the release pointed out.

- dc chennai

Dear Forum mates,

Though generating Additional revenue generation is essential to run the financial management of the state, fixing highest tax rate of 14.5 % could have been avoided.

To make up the revenue deficits, tax recoveries and tax administration (compliance of revenue Law) could have been tightened. This drastic hike of sales tax rates will make
the poor man more poorer (Extra taxing of toxic commodities like liquor and tobacco are ok moves)

Any administrator should not resort to the easiest way to solve a problem but only the most righteous way .

Forum's view are welcome.

Thanks and regards.

Ravichandran.S

Cost of mobiles, DVDs, LED/LCD to go up

Dear forum friends,

It is a well-known fact that every morning you wake up, to be confronted with some form of a new tax being passed on the citizens. These taxes have a chain reaction and produce other forms of hidden taxes.

Running the state affairs in principle should be the same as running a private company. In a private company there is a Boss, General Manager and an Accountant and many others down the hierarchy to run the business profitably.

To run a business profitably one has to keep the cost of a production low. If the cost of production is high, the price of the ultimate product has to be set higher in order to make profits. Due to unaffordability the consumer looks for other cheaper products. This would result in the company slowly moving towards closure.

It is the same with State Governments where the public spending is not controlled. We see how many powerful people of a Govt. are busy improving their private enterprises by robbing state funds, regardless of the rise of the cost of living of the masses.

However, unfortunately we have the habit of voting people into power who promise a Utopia.

All state Governments should be subjected to periodical Audit Systems to control extravagant spending. (Vertrauen ist Good, Kontrolle ist Besser - a German saying) meaning Trust is Good, Control is better.

Rajpriya