 "Biscuit makers seek lower tax rate under GST")
Biscuit manufacturers have sought lower GST rate saying it is an item of mass consumption and higher taxes will have an adverse impact on production as well as demand of this food item.
The Federation of Biscuit Manufacturers of India (FBMI) has sent a representation to the GST Council demanding that biscuits be kept in the lowest slab under the GST regime.
"FBMI has urged the GST Council to keep biscuits in its lowest slab since biscuits are an item of mass consumption and higher taxation on it would adversely hit biscuit production as well as its consumption and hence employment in the industry," the association said in a statement.
Stating that almost 93 per cent of the food basket comprises basic food, the FBMI said the government proposes to tax basic food at a lower rate under GST.
"Taxing the remaining 7 per cent food items at higher rates under GST will lead to increase in complexity, without substantial addition to revenues. It will also not meet the goals of efficiency and equity," it said.
The tax rates should apply uniformly across the entire supply chain so as to encourage value added activities in the farm produce and food sector, the association argued.
"Under GST, there should be no discrimination while taxing food products on the basis of their being branded or un-branded, or premium or non-premium products, as this will encourage value addition across the chain from farm to plate," the FBMI said.
The lower and uniform GST rate on biscuits will also help India to be in line with international best practices, it added.
The Federation of Biscuit Manufacturers of India (FBMI) has sent a representation to the GST Council demanding that biscuits be kept in the lowest slab under the GST regime.
"FBMI has urged the GST Council to keep biscuits in its lowest slab since biscuits are an item of mass consumption and higher taxation on it would adversely hit biscuit production as well as its consumption and hence employment in the industry," the association said in a statement.
More From This Section
The FBMI, which is an affiliate association of PHD Chamber of Commerce and Industry, said lower GST rates on biscuits would enable the availability of the product at an affordable prices for the common man.
Stating that almost 93 per cent of the food basket comprises basic food, the FBMI said the government proposes to tax basic food at a lower rate under GST.
"Taxing the remaining 7 per cent food items at higher rates under GST will lead to increase in complexity, without substantial addition to revenues. It will also not meet the goals of efficiency and equity," it said.
The tax rates should apply uniformly across the entire supply chain so as to encourage value added activities in the farm produce and food sector, the association argued.
"Under GST, there should be no discrimination while taxing food products on the basis of their being branded or un-branded, or premium or non-premium products, as this will encourage value addition across the chain from farm to plate," the FBMI said.
The lower and uniform GST rate on biscuits will also help India to be in line with international best practices, it added.