BMA has been on the forefront in vigorously pursuing Biscuit Industry’s request for reducing VAT from 12.5% to 4%. To further highlight acute hardships and heavy losses being suffered by biscuit manufacturers especially those in the SME sector, our Association has again taken initiative and submitted detailed representations to Shri Asim Dasgupta, Chairman and Satish Chandra, Member Secretary, Empowered Committee on VAT and similar representations have also been submitted to the Chief Ministers and Finance/ Excise and Taxes Ministers and to the concerned officials of all State Governments. The adverse impact of high rate of VAT along with rising cost of production/ prices of major raw material/ inputs etc have been highlighted.
To follow up and voice Biscuit Industry’s view points on VAT, IBMA Delegations propose to meet the Ministers, officials in various States.
Members in different States are once again requested to assist us in obtaining such follow up meetings, so as to seek VAT @ 4% on Biscuits, especially in the context of the proposed introduction of Goods & Services Tax(GST) merging VAT and other local taxes, with effect from 1st April 2010, since reduction on VAT to 4% will result in lower rate of GST on Biscuits.