TN Budget

Value Added Tax (VAT) from 2007

The Tamil Nadu state Budget was presented in the assembly today by Finance Minister Anbazhagan. The DMK Government proposed to introduce VAT from 2007. The introduction of VAT abolishes the resales tax in the state. The announcement fulfils a key demand by the industrialists in the state. The introduction of VAT will also boost revenue generation by the state.

Government Employees

The Government will setup a Third Police Commission to address the grievances of the police force in the state. It will also consider implementing the Sixth Pay Commission in the state at an “appropriate time”. The Government also announced the restoration of bonus benefits to employees withheld by the previous ADMK regime.


Special concessions will be provided to computer manufacturing firms who setup their units in the state. A second Tidel park would be setup to attract more companies and a joint venture software park between software companies and government will be setup at Coimbatore. Also sales tax exemption is provided to licensed Tamil software. Finally, free power of up-to 100 units for two months will be provided to handloom weavers.


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