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The Karnataka Planters' Association (KPA) has sought reduction in rate of value-added tax (VAT) on agriculture inputs such as chemicals and fertilisers.
Office-bearers of KPA who met the Chief Minister, Mr Sadananda Gowda, on Monday have requested the State Government to reduce the rate of VAT on agriculture inputs such as chemicals and fertilisers which is 5 per cent and for agriculture nutrients it is 13.5 per cent.
According to Mr Marvin Rodrigues, Chairman of KPA, who led the planters' delegation, said “Due to scarcity and demand for fertilisers, the cost of fertilisers and other agricultural inputs have shot up more than 100 per cent in the last couple of years.”
“Tamil Nadu and Kerala have totally exempted fertilisers and chemicals from the provisions of VAT. Hence, we have requested the Karnataka Government to address it in the forthcoming State Budget,” he added.
The planters' body has also sought exemption of ‘partnership firms' from agricultural income tax.
Partnership firms should have been given the exemption along with ‘individuals' because partnership firms are union of individuals generally consisting of members of the same family, said Mr Rodrigues.
“They have created partnership firms for the sake of convenience and common management and to remain united as a single entity. Therefore, it is same as an individual concern. Moreover, coffee holdings of majority of the partnership firms are of small and medium extents,” he said.
The KPA said the collections from partnership firms is minimal compared to other revenues of the Government. The AIT collections for partnership firms in Kodagu district for 2010-11 and 2011-12 (as on September 30) were 2.08 lakh and 1.72 lakh, respectively.
Mr Rodrigues said we have requested the State Government to exempt companies too from the purview of AIT as has been done in our neighbouring State of Tamil Nadu.
“This will enable them to reinvest whatever little surplus is available back into their plantations which has been neglected for the last several years,” he added.
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