Kerala waives VAT on fertilisers

In a relief to farmers facing price rise and shortage of fertilisers, the Kerala government today decided to waive 4 per cent value added tax (VAT) and one per cent surcharge on fertilisers.

The decision was taken in view of increase in prices of fertilisers and their shortage which posed difficulties to farmers, Chief Minister Oommen Chandy told reporters after a state cabinet meeting.

The farming community in the state would benefit by Rs 35 crore due to this measure. Fertilisers worth about Rs 700 crore is sold in the state annually, he said.

On scaricity of fertilisers like potash, Chandy said the government would take up the matter with the Centre.