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CII seeks more steps to boost agro-processing
Our Bureau
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`Five-year VAT exemption for wheat products must be continued'
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Bangalore
March 13
The Confederation of Indian Industry-Karnataka's pre-Budget memorandum submitted to the Karnataka Government has called for measures which will encourage agro-processing industries and public-private partnerships in creating social infrastructure.
The memorandum suggested a continued five-year VAT exemption for wheat products, cutting the VAT rate on biscuits from 12.5 per cent to 4 per cent; and reduction in the tax rate on agri machinery, parts and accessories to four per cent.
Allowing FDI in agro industries, appropriate infrastructure facilities and making market information available on the Web will boost the sector, a CII Karnataka release here said.
The apex body has suggested amendment to the notification issued on capital goods, IT products and industrial inputs and packing material under the KVAT Act to be aligned with the revised HSN classification (harmonised system of nomenclature, notified by the Centre in December 2006.) The retention rate of stock transfer should be aligned with the CST rate and amendment to the KVAT Act 2003 to grant exemption to the lease rentals received during the VAT regime in respect of lease agreements entered prior to April 1, 2005.
Local tax exemptions
CII has also sought notification of exemptions on local taxes and levies on SEZ developers. Although the Karnataka SEZ policy includes the concessions, they have not been notified.
It has sought fixing of reasonable ceiling on stamp duty leviable on equitable mortgage. The current level of 0.5 per cent stamp duty on the loan amount without ceiling has pushed up the cost burden on companies, the memorandum said.
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