Financial Daily from THE HINDU group of publications
Saturday, Sep 25, 2004
Financial Daily from THE HINDU group of publications Saturday, Sep 25, 2004 |
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Agri-Biz & Commodities
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Rice TN keen on `zero' VAT rate for rice K.R. Srivats
New Delhi , Sept. 24 THE Tamil Nadu Finance Minister, Mr C. Ponnaiyan, wants the Empowered Committee of State Finance Ministers on Value Added Tax (VAT) to allow his State to categorise `rice' among the list of items (permitted list) on which the VAT rate could be specified as `nil' or `zero'. As of now, the Empowered Committee has suggested that the VAT rate for rice should be 4 per cent. Sources said the Minister had also made a case for pegging the VAT rate on tea at 4 per cent. A large number of States are keen that the VAT rate on tea be pegged at 12.5 per cent. He is understood to have highlighted that a number of small growers in Tamil Nadu are dependent on tea and that 12.5 per cent VAT rate would impact the demand for the product. Sources said the suggestion made by the Tamil Nadu Finance Minister on rice might be difficult to implement. "The Minister wants rice to be categorised under the list of items of local importance. For those items that are under the list of items of local importance, the VAT rate can be zero. But the main problem is that an item of inter-state trade cannot be brought under the list of items of local importance. We all know that there is so much of inter-state trade in rice," sources in the empowered committee said.
More Stories on : Rice | Taxation | Tamil Nadu
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