TN to implement VAT, wants Centre to foot bill

The Tamil Nadu government on Saturday announced its decision to implement Value Added Tax in the state from January 1, 2007. State finance secretary K Gnanadesikan said Tamil Nadu would seek ‘‘full compensation’’ for the losses it incurs due to the implementation of VAT. ‘‘The implementation will cost the state Rs 2,400 crore per annum,’’ he said. Traders buying and selling within the state would have a threshold of Rs 10 lakh for exemption from registration and payment of tax under the State Act.