Tamil Nadu Budget 2007-2008 Highlights

Tamil Nadu Budget 2007-2008 Highlights.

In a populist budget which could please housewives, farmers and students, Tamil Nadu Finance Minister K Anbazhagan today announced exemptions from value added tax (VAT), reduction in VAT and a number of concessions, but imposed a hefty four per cent tax on some items used by the industry.

The Tamil Nadu budget 2007-08 showed an uncovered overall deficit of Rs 3.75 crore, a revenue deficit of Rs 101.38 crore and a total fiscal deficit of Rs 7,800.56 crore.
Anbazhagan also announced a two per cent reduction in co-operative farm loans from seven to five per cent.

Kerosene pressure stoves, fertiliser mixture made out of chemical fertilisers, seeds for sowing purposes, pencils, ball pens, ink, pillow covers, bedsheets and towels, note books, geometry boxes, refined oil, used by households on a large-scale have been exempted from VAT.

VAT has been reduced from 12.5 per cent to four per cent on unbranded coffee powder, masala powders, unbranded ghee, plastic goods, audio cassettes, school bags and used cars.
Much to the dismay of industry, Anbazhagan imposed a four per cent tax on superior kerosene oil, molasses, industrial gases and textile machinery.

He also announced setting up of a Special Economic Zone in the backward Virudhunagar district.
He said under-graduate students studying in government arts colleges would be exempted from tuition fees, thereby extending free education to them to college level.

In a bid to strengthen infrastructure, he announced establishment of two shipyards in the private sector at a cost of Rs 3,700 crore at Ennore and Cuddalore.

To give a boost to the flourishing IT industry in the state, Anbazhagan announced that IT Parks would be set up at Coimbatore, Madurai, Tiruchirappalli, Salem