More than one lakh small and medium traders in the State would be benefited by the concessional rate of tax announced by the Government of Tamil Nadu, Mr S. Rethinavelu, President, Tamil Nadu Chamber of Commerce and Industry, said.

In a statement here, he said, as per the Tamil Nadu Value Added Tax 2006, every dealer who effects second and subsequent sales of goods purchased within the State, whose total turnover for a year is less than Rs 50 lakh, may, at his option instead of paying tax as per VAT rates, pay a compounding tax on his total turnover at such rate not exceeding one per cent, as may be notified by the Government under compounding rate of tax method.

The chamber had sought the rate to be fixed at 0.5 per cent and the Government has conceded the demand.