TN scraps market fee on cotton

Tamil Nadu has decided to waive the one per cent tax (market fee) levied on the sale value of cotton and waste punch on entry into the market, imported from other states.

Chief Minister M K Stalin made the announcement in the state legislature today. He informed the House that that under Section 24 of the Tamil Nadu Agricultural Products Marketing Regulation Act, 1987, a one per cent tax in the form of market fee is to be paid on cotton packing, cotton and waste cotton, as all the considered as agricultural products and the tax is levied on cotton packages when purchased or sold in the markets of Tamil Nadu.

Stalin said that he had meetings with the cotton weavers on assuming office as the Chief Minister, they had sought the abolition of the tax and in the light of that demand, the levy was being abolished.

The state has 1,570 spinning mills, he stated.