Karunanidhi against regional excise exemptions and wants Service Tax for state
An "artificial and unproductive shift of capital" had occurred owing to the Centre exempting from excise duty goods produced in certain States, the Tamil Nadu Chief Minister Karunanidhi said at the National Development Council meeting.. He called for steps to correct these "distortions" immediately and appealed to the States to collectively evolve a mechanism to "prevent unhealthy tax competition through exemptions, which harms all of us by reducing the resource base available to help the poor and weaker sections."
He also wanted collection of Service Tax to be transferred to the States though the proceeds could be shared with the Centre.
Karunanidhi is an important member of the ruling alliance and what he says has to be heard.