Chennai: In a move aimed at mopping up more revenue for the state, the government on Thursday proposed to levy a five per cent additional tax under Value Added Tax (VAT) on taxable turnover of intra-State sale of all kinds of alcoholic liquors. This comes with retrospective effect from April 1, 2016.
“In order to augment the revenue to the State, the government has decided to amend the said Tamil Nadu Act 32 of 2006, for making a provision to levy additional tax, with retrospective effect from April 1, 2016, on taxable turnover of the intra-state sale of alcoholic liquors of all kinds for human consumption at a rate not exceeding five per cent,” K. C. Veeramani, commercial taxes minister, said while introducing the Bill.
As per the TN Value Added Tax (second amendment) Act, 2017, every dealer liable to pay tax on the sale of alcoholic liquors of all kinds for human consumption, other than the sale in inter-State trade or commerce or international trade or commerce shall be liable to pay, in addition to the tax payable, an additional tax on the taxable turnover of sale of liquor at such rate not exceeding 5% as may be specified by the government by notification.
Different rates may be specified in respect of different kinds of alcoholic liquors for human consumption. The amendment of section 3 of TN VAT, 2006, will make the State on par with Gujarat, Uttar Pradesh, Uttarakhand and Madhya Pradesh, which have provided for levy of additional tax on goods.
Veeramani, introduced another bill to amend the second schedule of TN VAT, 2006, to give effect to a notification issued to increase the rate of tax on petrol to 34 per cent and high speed diesel oil to 25 per cent.
