Indian Food Industry Expects Favorable policy in budget
The ministry of food processing industries of India has accepted the request of the delegation of the food processing industry to consider tax reduction policies for the improvement in the growth rate of the food Industry and the ministry has agreed to introduce few new plans in the preparation of the forth coming budget.
The ministry is also ready to recommend the reconsideration of the licensing system, and enhancement of the moratorium on interest payments for the industry to the finance ministry of India. It also consulted the confederation of Indian industry (CII) for suggestions for the overall development of the food processing industry.
The valuable points suggested by CII will be the part of its recommendations for the budget. The ministry would also scrutiny the lending processes and equal tax rate system to help in the reduction of transaction cost for the small-scale food processing industry. For the benefit of the Industry the ministry would recommend the simple policy for distinguish units in different parts of the country, there are abnormalities in taxes resulting differences in excise duties up to 16% on different food products and eatables like non cocoa confectionery items are liable 50% less than of the cocoa confectionery items in excise duty. The retail price of some food products might effected because of the planning of the ministry to implement same tax on all distinguish food products. The reformed policy in this sector will definitely be welcomed at the stage where food products industry has already shown the highest growth rate of 26.8% in the India’s industrial output which is 12.4% it is the highest growth in a decade.
ABC NEWS NETWORK