Tamil Nadu: Lower tax on essential items, traders urge GST council
When the GST was introduced, former Union Finance Minister Arun Jaitley said that once the GST revenue reached Rs 1 lakh crore, tax reductions and tax reliefs would be made
Representative image
MADURAI: Many traders and stakeholders relying on Tamil Nadu Foodgrains Merchants Association Limited, Madurai, are looking forward to reducing the Goods and Services Tax (GST) and have placed demands ahead of the 55th GST council meeting to lower the existing tax slab rates.
When the GST was introduced, former Union Finance Minister Arun Jaitley said that once the GST revenue reached Rs 1 lakh crore, tax reductions and tax reliefs would be made. But, now the revenue has crossed more than Rs 1.75 lakh-crore and tax rates have not been reduced, SVSS Velshankar, president of the Association, said on Sunday.
He also added that tax evasion is high due to the non-regularisation of tax on many products. As a result, the genuine taxpayers were greatly affected, and many of them were eventually out of their traditional business. Due to this, there’s a heavy revenue loss for the central government.
Rice, being perhaps the most common and prominently used food, should be exempted from tax. Currently, rice, the basic commodity for food security, sold in bags of 25 kilograms, is taxed at 5 per cent.
A similar taxation applies to wheat and jiggery as well. Not all people could afford 25 kg of rice at one go, and people with dismal economic prospects could hardly afford it.
Several processed edible products, which are subject to 12 and 18 per cent GST, should be lowered to 5 per cent.
Further, he said the existing 12 per cent GST on essential commodities including pickle, butter, ghee and roasted groundnut should also be reduced to five per cent.
Moreover, ready-to-cook food items, which are currently under 18 per cent tax slab, had to be lowered to five per cent.
Further, he said consumers, who often or even buy idli and dosa batter from shops almost daily, were burdened by five per cent.
Even ‘vathal’ varieties, which are mostly preferred by the common people, who are economically poor, were under the five per cent tax slab. Considering the economic conditions of these people, the GST council should provide tax relief.
He also added that the 18 per cent GST on camphor used for offering puja and bricks for construction should be reduced to five per cent. Further, he urged the need to appoint a member for the Appellate Tribunal under the Goods and Services Tax Act.
