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Flour mills seek removal of VAT on wheat, products

posted Sep 19, 2011, 4:15 AM by Puneet Goyal   [ updated Sep 19, 2011, 4:16 AM ]

The Tamil Nadu Roller Flour Mills Association has asked the Tamil Nadu Government to do away with VAT on wheat and wheat products.

According to a copy of the representation released to the media, the association has urged the Chief Minister, Ms J. Jayalalithaa, to remove the 2 per cent and 4 per cent VAT levied on wheat and wheat products respectively.

The association has said that the millers are handicapped by the logistics of moving wheat to the south and the power shortage. In addition, the problem is aggravated by Karnataka and the Union Territory of Pondicherry not levying VAT on wheat and wheat products. So the Tamil Nadu millers are at a disadvantage as compared to their counterparts who dump their products into the State.

Removing VAT on wheat and wheat products, the main staple grain after rice, will benefit the flour milling industry and the consumers, the association has said. It has also urged the Government to take steps to prevent the dumping of wheat and wheat products from the neighbouring States without paying taxes