Business Daily from THE HINDU group of publications
Friday, Mar 30, 2007
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Business Daily from THE HINDU group of publications Friday, Mar 30, 2007 ePaper |
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Government
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Agricultural Policy Industry & Economy - Taxation Agri-Biz & Commodities - Sugar States - Maharashtra Maharashtra waives purchase tax on sugarcane Our Bureau
Mumbai March 29 The Maharashtra Government has waived purchase tax on sugarcane for 2006-07. The waiver will be at a cost of Rs 100 crore to the State Exchequer. The State Government levies three per cent tax on sugarcane purchased by mills. Announcing the decision in the Legislative Assembly on Thursday, Finance Minister Mr Jayant Patil said that for those mills that have already paid the tax, the amount would be adjusted against their dues for the next year. The tax waiver is intended to help the co-operative sugar mills that are making losses because of a bumper crop and low demand during the year. Mr Prakash Naiknavare, Managing Director of Maharashtra State Co-operative Sugar Factories Federation Ltd, said that the waiver will provide some relief to the co-operative mills, which are losing about Rs 2 on every kg of sugar produced. Agriculture expert Mr Jagadeesh Sunkad said that the waiver is an attempt on part of the State Government to control sugar prices. However, the retail customer might not stand to benefit from the waiver as much as sugar traders might, he added. The co-operative sugar mills are running up huge losses as their cost of production is higher than the industry average. Their sugar recovery is in the 8-9 per cent range, while the industry average is 11 per cent. The current tax sop will provide them some relief, said Mr Sunkad.
More Stories on : Agricultural Policy | Taxation | Sugar | Maharashtra
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