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VAT exemption for tobacco products hailed
August, 21st 2007
The Tamil Nadu Chamber of Commerce and Industry (TNCCI) has welcomed the re-instated VAT (value added tax) exemption for tobacco products by the Government of Tamil Nadu with retrospective effect from April 1, 2007.

In a press release, the Chamber President, Mr S. Rethinavelu, said due to the removal of tobacco and tobacco products from additional excise duty, by the Union Government, cigarettes, beedi and other tobacco products attracted 12.5 per cent in Tamil Nadu.The Chamber urged the Tamil Nadu Government to re-instate VAT exemption for beedi, cheroot and tobacco products other then cigarettes as these were hand-made and produced by cottage industries, providing employment and livelihood to thousands of illiterate men and women in rural areas. The Chamber also requested the Government to grant VAT exemption for chewing (scented) tobacco from April 1,2007.

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