Jammu and Kashmir - No VAT on food grains,
Finance minister, Abdul Rahim Rather today said though
being tempted the government has decided not to impose
VAT on foodgrain items including Atta, Maida, Suji,
Besan, Paddy and Rice. “I had apprised the Members last
year that several states are charging VAT at rates
ranging from 4% to 5% on Atta, Maida, Suji, Besan, Paddy
and rice etc. In consideration of last year’s rising
food inflation as an All India phenomenon, I had
deferred my proposal to bring these items under the VAT
net and announced the continuation of exemption from the
levy of VAT on these commodities up to 31st March,
2012”, the Finance Minister said.
He added that the food inflation has, considerably, eased in the recent months.
“I am tempted to bring these items under the tax net from the next financial
year. However, I feel that it will be prudent to wait till the economy
stabilizes sufficiently. Accordingly, I announce continuation of these
exemptions up to 31st March, 2013. I will have to forego revenue of over a
couple of hundred crore of rupees on this account”.
Similarly, the finance minister also announced
that there will be no tax imposed by the state on chemical fertilizers,
bio-fertilizers and micro-nutrients which are extensively used for improving
“As a sequel to the earlier tax concessions,
announced by me for my brothers engaged in agriculture, I propose to fully
exempt all types of chemical fertilizers, bio-fertilizers and micro-nutrients
from the levy of VAT”, he said. He said that the exemption on pesticides,
weedicides and insecticides from the levy of VAT will also continue.