The Tamil Nadu Chamber of Commerce and Industry has opposed a Centre’s proposal to increase service tax from 15 to 18 per cent before rollout of GST (Goods and Services Tax).

In a statement, its senior president S. Rethinavelu said from a mere five per cent, when it was introduced in 2003, it had been raised to this level.

Unlike manufacturers who could set off the service tax paid by them in the central excise duty, traders could not do so. They could only add the service tax incidence to the cost price.

Any increase before the rollout of the GST would directly impact the consumers, Mr. Rethinavelu said.

It was unfortunate that a consensus was yet to be arrived at by the officials over sharing the administrative control between the Centre and States after the rollout.

The GST council, which had representatives from various States, should rise up and sort out the problem amicably so that the GST was in place from April 1, Mr. Rethinavelu said.