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‘Sour times’ for small pickle manufacturers, sector seek reduction in tax rate under GST

Updated: Mar 09, 2018 07:22:23am
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‘Sour times’ for small pickle manufacturers, sector seek reduction in tax rate under GST

New Delhi, Mar 9 (KNN) With the fruit season round the corner, the small scale pickle (achaar) manufacturers have sought government’s intervention to reduce the tax rate in the item to 5 per cent.

Talking to KNN, Zinobia Schroff, a Mumbai based Laganu pickle manufacturer said that manufacturers did welcome the implementation of GST and the reform has been a historic one, but the government needs to reconsider the tax rates that are imposed on the sector.

At present, pickle is clubbed with other fruit and vegetable-processed such as jams and attract 12% tax, this needs to be made reasonable, he said.

“A reasonable 5 per cent tax rate for the pickles must be considered considering that the pickle manufactures are labour intensive and provides employment to a fair share of population”.

The sector is expecting some relief with the upcoming GST meeting round the corner.

Commenting along similar lines, M N Ramachandra Shetty, founder of the Karnataka State Pickle Manufacturers Association in a press interview said that the high 12 per cent tax is not rational for the pickle industry.

With the mango fruit season round the corner and sales dropped already, the manufacturers fear lack of funds to buy the new fruit.

The manufacturers fear that in case the sales continue the way they are, and they not finding enough funds to buy the fruit, the manufacturing cycle will be impacted severely rendering the units to remain out of business for an year at least. (With Inputs from a media report) (KNN/DA)

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