Chief Minister Mr.O.Panneerselvam, who also holds the finance portfolio presented the Tamil Nadu State budget for the financial year 2015-16, on 25th March,2015. No new taxes were Imposed by the Tamil Nadu State Government in the deficit budget of Rs.4,616 Crore for fiscal year 2015-16
The government has preferred not to make any upward revision in VAT on petroleum products, unlike other states where VAT rate has been increased.
Certain critical tax concessions were announced in order to boost the manufacturing sector.
EASE OF DOING BUSINESS –
1. In order to boost energy green producers, Electricity Tax on generating plants using biomass (excluding bagasse) is withdrawn.
2. In order to make the manufacturing industries in Tamil Nadu more competitive, Input Tax Credit Reversal imposed at the rate of 3% u/s 19(2)(v) is withdrawn.
3. The dealers can claim Input Tax Credit without Form-C on inter-state sales.