Kerala - Plea to cut VAT on cashew kernels

The Cashew Export Promotion Council has appealed to the authorities of all States to reduce Value Added Tax (VAT) on cashew kernels to four per cent.

The council pointed out that raw cashew nuts are included among items attracting four per cent VAT and cashew kernels among those attracting 12.5 per cent in most States.

As the higher rate of tax would adversely affect consumption of cashew kernels, the Council represented to the Empowered Committee of State Finance Ministers and various State Governments to put cashew kernels among the items attracting four per cent tax.

The council has, in addition, represented for abolition of the four per cent CST on cashew kernels.

The council expressed happiness at the fact that the Government of India has reduced the Central Sales Tax for inter-State sales from four to three per cent from April 1 2007, which helps the exporters.

In response to the council’s request, the Government of Kerala has also reduced VAT on cashew kernels to four per cent.