Biscuit makers demand reduction in VAT
Biscuit manufacturers today demanded value added tax (VAT) on biscuit be reduced to four per cent from the current level of 12.5 per cent.
By PTI |
NEW DELHI: Biscuit manufacturers today demanded value added tax (VAT) on biscuit be reduced to four per cent from the current level of 12.5 per cent.
"The government should reduce VAT on biscuits to four per cent to bring the sector on par with other processed food items," Indian Biscuits Manufacturers' Association President B P Agarwal told reporters here.
He wondered why the government has kept VAT at 12.5 per cent on biscuits while many other items such as sweets, namkeens and dry fruits attract four per cent rate.
The Rs 5,500 crore biscuit industry, which is growing at 11-12 per cent every year, would grow by 20-25 per cent to Rs 8,000 crore in turnover if VAT is reduced to four per cent, he said.
"The government would not lose revenue as after reduction of VAT sale of biscuits would increase," Agarwal, who is also the chairman of Priyagold, said adding it would also help in the growth of agriculture sector because of more utilisation of raw materials like wheat flour and sugar.
Another leading manufacturer and Director of Anmol biscuits Gobind Ram Choudhary said more sale of biscuits would result in more employment generation, both directly and indirectly.
Although is VAT is decided by states individually, most of the states follow the guidelines of the empowered group headed by West Bengal Finance Minister Asim Dasgupta.
States like Tamil Nadu and Assam have four per cent VAT on biscuits ever since it came into force in 2005, Choudhary said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
