Stalin announces new tax waiver scheme for traders
Making an announcement under Rule 110 in the State Assembly, Stalin said that with regard to tax owed by traders to the State government, as many as 2,11,607 tax dispute cases involving 1,42,569 traders were pending in the State.
Tamil Nadu Chief Minister M K Stalin
CHENNAI: Chief Minister M K Stalin on Tuesday announced a new tax waiver scheme for traders, including a complete waiver of tax dues up to Rs 50,000 for small traders.
Making an announcement under Rule 110 in the State Assembly, Stalin said that with regard to tax owed by traders to the State government, as many as 2,11,607 tax dispute cases involving 1,42,569 traders were pending in the State.
Informing the House that the volume of tax arrears owed to the state was estimated at Rs 25,000 crore, the CM said that the enormity of pending tax disputes has burdened the commercial tax department officials and put the traders through a great deal of hardship besides a huge chunk of the state's revenue pending in the State.
Complete waiver up to Rs 50,000 per assessment year for small traders
Citing the tax reconciliation schemes implemented in various instances in the past in the State, Stalin announced that the new tax waiver scheme has been designed with a new approach and additional concessions.
Under the new waiver scheme, arrears of traders who owe tax, interest, and penalty up to less than Rs 50,000 per tax assessment year, would be completely waived, the CM announced, adding that a complete exemption would be given for cases involving arrears up to less Rs 50,000 per tax assessment year.
Claiming that the total tax waiver announced for small traders was the first of its kind in the State, the CM said that the scheme would benefit 95,502 small traders facing 1,40,398 tax disputes.
Categorizing other traders into four categories based on the dues they owe to the government, arrears from Rs 50,000 to Rs 10 lakhs, Rs 10 lakh to Rs 1 crore, Rs 1 crore to Rs 10 crore, and those above Rs 10 crore, the CM said that the first category of traders who owe tax dues between Rs 50,000 to Rs 10 lakhs to the government could resolve their disputes (cases) on payment of 20% of their outstanding dues or a certain percentage of their outstanding tax, interest and penalty.
The remaining three categories of traders could resolve their pending disputes with the government on payment of a certain sum of their outstanding tax dues, penalty, and interest.
The guidelines for the waiver scheme have been designed exclusively for those who accepted the assessment and those who have gone on appeal.
The CM also announced that the government would completely waive the accrued interest of those traders till the day they come forward to pay their dues.
The new waiver scheme would come into effect from October 16, 2023, and be in vogue till February 15, 2024.
