Oil seed crushing MSMEs upset over Govt’s decision to put edible oil under negative list for VAT remission

Jammu, Oct 15 (KNN) The Oil Seed Crushing MSME units in the region are concerned with the Finance Department’s decision to put the finished product Edible Oil under Negative List leading to higher price being passed on to the consumers.

An urgent meeting of the Oil Seed Crushing MSME Units was held at Bari Brahmana Industries Association (BBIA).

The members raised serious concern in respect of their finished product Edible Oil put under Negative List by the Finance Department in respect of VAT Remission to Industrial Sector of J&K due to which the common people of the State were  paying higher cost for the purchase of Edible Oil whereas the Almond being used by the Elite Class of the Society put under 0% VAT, BBIA said.

MSME units engaged in the manufacturing of Edible Oil use the Oil Seeds as their raw material for the extraction of edible oil by crushing the seeds to extract the Oil which involves the manufacturing process as approved by the Industries Department.

“It is unjustified on the part of Finance Department to put edible oil under Negative List which we term as discrimination with the MSME Units manufacturing Edible Oil in our State,” said Lalit Mahajan, BBIA President adding that the Government of India puts the Edible Oil manufacturing Units under thrust industries to promote the Food Processing Industries in our Country.

“In spite of our repeated requests to the Finance Department to remove Edible Oil being produced by the Oil Seeds Crushing Units from the Negative List no action has been taken by the Department  which we terms as Discrimination with the said units,” he said.

BBIA has appealed the J&K Finance Minister Haseeb A. Drabu and Industries & Commerce Minister Chander Prakash to remove the Edible Oil being manufactured by Oil Seed Crushing Units from the Negative List. (KNN Bureau)