SEA seeks VAT cut for oilseed, related items
The Solvent Extractors’ Association (SEA) of India has requested the finance minister, P Chidambaram, not to raise Value Added Tax (VAT) on oilseed, edible oil, oil cake and rice bran.
By TNN |
COIMBATORE: The Solvent Extractors’ Association (SEA) of India has requested the finance minister, P Chidambaram, not to raise Value Added Tax (VAT) on oilseed, edible oil, oil cake and rice bran, as it would further burden the consumers with a certain impact on domestic prices of oilseed and edible oils.
Addressing a press conference here, SEA president Ashok Sethia said: “If possible, the government should exempt oilseed and related items from VAT or reduce it to 1% considering the fact that these were the essential commodities of mass consumption. Even the prevailing rate of 4% of VAT on oilseed is a big burden, making it difficult for indigenous sector to face challenges of globalisation.”
The domestic turnover of the vegetable oil industry is about Rs 70,000 crore and import-export turnover of about Rs 16,000 crore a year. Further, there was an urgent need to promote oil palm on a large scale in the country in view of its potential, and also to set up an oilseed development fund to promote the oilseeds.
The fund could be created out of customs duty collected from the import of edible oils and the same should be used for the development and increased production of oilseed in the country.
Addressing a press conference here, SEA president Ashok Sethia said: “If possible, the government should exempt oilseed and related items from VAT or reduce it to 1% considering the fact that these were the essential commodities of mass consumption. Even the prevailing rate of 4% of VAT on oilseed is a big burden, making it difficult for indigenous sector to face challenges of globalisation.”
The domestic turnover of the vegetable oil industry is about Rs 70,000 crore and import-export turnover of about Rs 16,000 crore a year. Further, there was an urgent need to promote oil palm on a large scale in the country in view of its potential, and also to set up an oilseed development fund to promote the oilseeds.
The fund could be created out of customs duty collected from the import of edible oils and the same should be used for the development and increased production of oilseed in the country.
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