Industry & Economy
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Taxation
Mumbai bakers to go on indefinite strike against VAT
Our Bureau
Mumbai
,
May 5
ABOUT 17,000 bakers in the State have decided to go on indefinite strike from May 15, if the Maharashtra Government fails to take any decision regarding 12.5 per cent VAT imposed on bakery products and confectionery items from April 1.
The State Government has imposed 12.5 per cent VAT as compared to the Sales Tax rate of 8 per cent on bakery products such as biscuits, cookies and cakes. However, bread and pav (loaf) being the essential item has been exempted from VAT.
VAT on snacks (farsan) and mithai items have been reduced to 4 per cent from sales tax rate of 8 per cent. Thus, net burden on bakery products works out to 8 per cent.
"With this discriminatory move, snacks and mithai will enjoy more patronage as the cost to the customer is under control because of low taxes, while the bakery confectionery snacks will become costly," Mr K.P. Irani, president of India Bakers' Association said.
Representatives of all the bakers associations in the State have strongly opposed the move and demanded to reduce VAT rate from 12.5 per cent to 4 per cent on bakery products - at par with snacks and farsan.
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