|
The
chamber also sought exemption of non-processed food
items from the proposed state level GST and four per
cent tax on processed food items.
To
compensate for the revenue loss, the Centre and states
could tax demerit processed goods such as tobacco and
alcohol at higher rates, it said.
"
Processed foods and all primary agri products like rice,
flour and pulses should be put in a zero rated
category,"the chamber said.
The
government wants to increase processing levels of food
products to 10 per cent from current two per cent which
would be possible only if food items are exempted from
GST, Assocham President Swati Piramal said.
Food
processing sector is known to have a high multiplier
effect in terms of allied trades and industries. With
every person directly employed in processing, about 100
people get employment in related functions, the industry
body said.
GST,
scheduled to be implemented from April 2010, would do
away with most of the indirect taxes levied at the
Centre such as excise and services tax, and VAT and
Octroi at the state level.
Source
: Indopia, India, dated 16/10/2009 |
