Tamil Nadu CM MK Stalin Repeals Market Entry Tax On Cotton, Cotton Wastes

Stalin said the state contributes to one-third of the garment sales in the country and the state has 1,570 spinning spinning mills which contributes 45% of the cotton yarn production of the country.

Chennai: Tamil Nadu Chief Minister MK Stalin on Saturday announced in the assembly that his government would cancel 1% market entry tax on cotton and cotton wastes. 

Making the announcement under rule 110 in the assembly, Stalin said that the state contributes to one-third of the garment sales in the country and the state has about 1,570 spinning spinning mills which contributes about 45% of the cotton yarn production of the country. But, about 95% of the cotton required for the spinning mills in the state is procured from other states, according to a statement from the Department of Information and Public Relations (DIPR).

 The chief minister, according to the statement, said that market entry tax is levied for agricultural products under the Tamil Nadu Agriculture Produce Marketing (Regulation) Act, 1987 and as per which, 1% market entry tax is levied on raw cotton, cotton and cotton wastes during its procurement and sales. 

He said, ideally the tax should be levied only on raw cotton but instead it is levied on cotton and cotton wastes and as a result, many micro and small enterprises are struggling to pay the tax. 

It has been a long pending demand of the weavers and industrialists to cancel the tax on cotton and cotton wastes, the Chief Minister said and added that considering their demand, the market entry tax on cotton and cotton waste will be cancelled. An amendment to bring the announcement into the effect will be made at the earliest, the statement added.