 "Residents look at the uprooted trees in a residential area which have been the worst hit due to the cyclone Vardah that brought life to a stand still across Chennai. Photo: PTI")
After Cyclone Vardah left a trail of destruction in Chennai, the Tamil Nadu government is planning methods to ease settlement of insurance claims to small and medium enterprises (SMEs) in the state. This would help SMEs in case of future calamities affecting their business, said a senior official from the government.
Speaking on the sidelines of the 5th edition of Tamil Nadu Finance Conclave organised by Confederation of Indian Industry (CII), S Krishnan, principal secretary - planning and development with the State government said that SMEs are one of the most affected segment in the natural calamities and there is requirement for some procedure related to the settling their insurance claims in such cases.
Delivering the key note address in the Conclave, Krishnan said that dual control over taxation in the States would create problems and the State has been raising its opinion on this from early days itself.
In 1991, Tamil Nadu's per capita income was below the national average and today the State is over 75% above the national average. Tamil Nadu was the fifth or sixth largest economy in the country in the early 1990s, while now it the second largest economy in the country. The centre's share according to the Finance Commission recommendations, has consistently fallen from almost 7% in the early 1990s to just about 4% now.
"We have been consistently able to raise our revenue. If States have an issue regarding the GST and if they want their views to be heard, I think there is a very legitimate case why that is so," he said.
"Our officials are in the process of discussing the various issues relating to GST and work out various mechanisms relating to it and trying to make it easy for trade and commerce within the state," he said. However, right from the beginning, the State has made it clear that it should not be seen as a move against improving the efficiency of the taxation structure.
For trade and commerce, having to report to fewer authorities is an important way in which you promote the easy of doing business, he added.
