Date:13/10/2008 URL: http://www.thehindu.com/2008/10/13/stories/2008101355490300.htm

Tamil Nadu

Reimbursement of VAT on petrol is eyewash

Staff Reporter

KRISHNAGIRI: The State Government’s announcement regarding reimbursement of VAT on petrol purchased for generation of power during peak hours by the industries is eyewash, said T. Ekamaba Vanan, Vice President of Krishnagiri District Small and Tiny Industries Association here on Sunday.

No industry is using petrol for generating power. Hence, the Government’s announcement to reimburse Rs. 10 per litre of petrol doesn’t make any sense, he added.

Moreover the condition that the petrol should be purchased at the private Essar Oil Company will not help the industries. The diesel price per litre is Rs. 37.13.

If the Government is not extending VAT reimbursement for diesel, it means the Government is not in a position to help the industries to thrive, Mr. Ekamba Vanan added.

He further stated that if the Government wants to help the small scale industries it should extend reimbursement on diesel and also there should not be any condition that it should be bought from a private oil company.