 "Tamil Nadu budget skips contentious Nokia Chennai plant issue")
While the Centre has been talking on and off record about reviving the Nokia Chennai plant, Tamil Nadu budget has totally skipped the issue.
The budget was presented by Tamil Nadu Chief Minister O Pannerselvam, who also holds finance portfolio, today. It may be noted that in the Budget 2015-16, the state decided to reduce VAT on mobile phones from 14.5% to 5%.
On Tuesday, reports quoting central government sources stated that Finnish telecom firm Nokia would be allowed to sell its Chennai plant with a condition that the money realised must be kept in escrow account till final verdict is out on its Rs 21,000 crore tax dispute.
Earlier, Prime Minister Narendra Modi and Union Commerce Minister had made statements stating that the Centre is keen on starting the plant.
Even Tamil Nadu government has called for lifting the assets-freeze imposed by the Income Tax authorities on Nokia plant. The State administration said this would facilitate other handset manufacturers are willing to open more unit. This is the first time the State came openly and asked for the Centre to unfreeze the plant.
The budget was presented by Tamil Nadu Chief Minister O Pannerselvam, who also holds finance portfolio, today. It may be noted that in the Budget 2015-16, the state decided to reduce VAT on mobile phones from 14.5% to 5%.
On Tuesday, reports quoting central government sources stated that Finnish telecom firm Nokia would be allowed to sell its Chennai plant with a condition that the money realised must be kept in escrow account till final verdict is out on its Rs 21,000 crore tax dispute.
Earlier, Prime Minister Narendra Modi and Union Commerce Minister had made statements stating that the Centre is keen on starting the plant.
Even Tamil Nadu government has called for lifting the assets-freeze imposed by the Income Tax authorities on Nokia plant. The State administration said this would facilitate other handset manufacturers are willing to open more unit. This is the first time the State came openly and asked for the Centre to unfreeze the plant.
Nokia suspended operation at its Sriperumbudur facility, near Chennai, with effect from November 1, 2014 since it could not transfer the plant to Microsoft. The plant was freezed by Income Tax Department in an alleged Rs 21,000 crore tax notice. The closure of plant resulted in 30,000 job loss.
These people were employed directly and indirectly. Besides Centre the State Government also slapped tax to the tune of Rs 1,500 crore, including tax demand and penalty.
These people were employed directly and indirectly. Besides Centre the State Government also slapped tax to the tune of Rs 1,500 crore, including tax demand and penalty.