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Coconut, allied products likely to get VAT exemption: Chief Minister

The Government will take steps to exempt coconut and allied products from value-added tax (VAT) by including them in zero category of the tax regime, Chief Minister V.S. Achuthanandan has said.

Inaugurating "Coco Fest 2007" organised by the Coconut Development Board here on Thursday evening, Mr. Achuthanandan said the cut in customs duty cut in importing edible oil and import duty on palm oil had a debilitating effect on coconut farmers of the State. The proposals of the union budget came as a big blow to the farmers and hence the State Government would take steps soon to exempt coconut and allied products from VAT, he said.

Compared with the neighbouring States, productivity was low in the State. Diversification and value-addition had become essential in this context. Old and diseased palms would be cut and scientific measures would be taken to enhance production, he said.

Union Minister of State for Commerce Jairam Ramesh, in his presidential address, said the onus for the fall in price of coconut oil could not be placed on the import policy and the Union Budget. Productivity enhancement was one major solution. The State was the major beneficiary for the revitalisation package for the plantation sector proposed by the Centre.

Details of the project would be finalised within three months and it would go on stream by mid-2007.

The Centre would address the concern of the State on the import policy with due seriousness. Agriculture Minister Mullakkara Rethnakaran and Law Minister M. Vijayakumar attended the programme. Coconut Development Board chairperson Minnie Mathew welcomed. Vice-chairman Vasant Vishnu Limaye proposed a vote of thanks.

Source : Hindu - Chennai, India, dated 04/05/2007

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