India: VAT exemption for agri implements soon

Deputy Chief Minister Siddaramaiah on Thursday told the Legislative Assembly that all agricultural implements will soon be exempt from Value Added Tax (VAT).

Intervening during a discussion on the demand for grants for the agriculture and horticulture departments, Mr Siddaramaiah, who also holds the finance portfolio said that the government had already brought a majority of agricultural implements under zero tax. However, a few items which had been left out from the schedule were being taxed at 12.5 per cent.Mr Siddaramaiah assured that the government will soon amendment the VAT Act to bring all agricultural implements under zero tax.

The entire opposition in the Legislative Assembly staged a walkout on Thursday in protest against the “inaction” of the government to protect the interest of coconut growers who had lost their crop due to the mite menace.

Participating in a discussion on demand for grants for the horticulture department, the members said coconut production had been badly hit in the State due to Eryophid mite menace and the prices of the nuts had crashed to a new low. The farmers were in distress and the government had failed to come to their rescue, they charged.

The members said the government should help the farmers by providing compensation for every tree infected by mite. Mr Vatal Nagaraj of Kannada Chalavali Vatal Paksha said more than 1.5 crore coconut trees in the State had perished due to the mite. He even displayed two mite infected coconuts and sought the Speaker’s permission to “present” them to Horticulture Minister Alangur Srinivas as a token of “gratitude” from the farmers.

Deputy Chief Minister Siddaramaiah said the government can announce compensation to farmers only after studying its financial implications.

Dissatisfied by the reply, the entire opposition staged a walk out shouting slogans against the government.

Release of funds

Earlier, Mr Siddaramaiah assured the House that the government will release within one month the remaining Rs 6 crore as support price for areca procurement under the Market Intervention Scheme.

The State government had reserved Rs 10 crore as support price for the purchase of areca out of which Rs 4 crore was released a few months ago.

Source