Date:22/11/2006 URL: http://www.thehindu.com/2006/11/22/stories/2006112216750600.htm

Tamil Nadu - Chennai

11th plan approach paper for levying taxes on services sector

Special Correspondent

Addresses major issues to be tackled by State

VITAL ISSUES: Vice-Chairman of the State Planning Commission, M. Naganathan, submitting 11th Five Year Plan Approach Paper to Chief Minister M. Karunanidhi at the Secretariat on Tuesday. — Photo: V.Ganesan

CHENNAI: The State Planning Commission has recommended to the State Government to "strongly pursue the case with the Union Government for allowing States to levy taxes on the services sector as a means of expanding the tax base."

Financial transfers

In the approach paper to the 11th Plan submitted to Chief Minister M. Karunanidhi here on Tuesday, the Commission said the Centre should also change the system of financial transfers to the State so that these "are based on equity and efficiency considerations."

Later, speaking to reporters, Planning Commission Vice-Chairperson M. Naganathan said the approach paper had addressed the major issues of concern, which were to be tackled by the State Government during the 11th Plan.

Priority to

farm sector

"Top among the priorities is the revitalisation of the agriculture sector in the State, which has been in a state of crisis during the preceding few years."

Social sector was another key area.

In his foreword to the approach paper, Mr. Karunanidhi said evolution of a broad consensus on the targets and the approach to the 11th Plan would strengthen the development process.

"Towards this objective, the Tamil Nadu Planning Commission places its approach paper before the public for discussion. I invite suggestions from intellectuals, political leaders, experts in various fields, social activists and all citizens interested in the welfare of Tamil Nadu."