Maharashtra - Solvent extractors ask to hold VAT, octroi on oil

The Solvent Extractors Association of India has demanded the Maharashtra government to do away or hold back value added tax, octroi and APMC tax on edible oils to check the rise in its prices.

In a memorandum to Chief Minister Vilasrao Deshmukh, Association Vice-President Parvez Kader said though the prices have softened in last one month due to duty reduction to zero level on crude edible oil, they can go up again in tandem with international market.

"We therefore suggest to the state government to consider to do away or keep in abeyance for sometime VAT (4 per cent), Octroi and APMC Tax on edible oils which accounts for nearly 8 per cent equal to Rs 4-5 per kg," he said.

The Industry will be pleased to pass on benefit to the consumers, he added.

While seeking a meeting with the Chief Minister, the Association has asked the state government to restrain Civil Supply officials to take indiscriminate action against the industry.

"This may lead to disrupt in supply and may lead to shortage and rise in prices," he said.

The memorandum said that uncertainty about restrictions on future tradings and likely implementation of Storage Control Order by the state government and raids by Civil Supply officials have pushed the market into doldrums.

"Importers are reluctant to enter into new contracts for the imports of edible oils," Kadar said adding it may deplete stocks and prices may begin to move up next month.

Source : finance.indiainfo.com - http://finance.indiainfo.com/, dated 11/04/2008