Dal traders worry over 5% tax under GST will kill business
Thalka News Bureau
INDORE: Where Tax rates on several kitchen items like pickles and mustard sauce, as well as movie tickets up to Rs 100 have been lowered in the upcoming Goods and Services Tax (GST), another important item such as Dal have created panic among Dal traders, after a 5% hike on all registered branded packaged pulses.
The percentage of tax rate on all packaged branded pulses have been raised by five per cent, according to All India Dal Mills Association, president Suresh Agarwal.
"There was no tax on branded packaged pulses but now the government has levied 5 per cent . This will affect the industry", he said.
Industry participants said the tax rate will kill margins of Dal mills, hitting their business and also cutting benefits to farmers. They said the demand for pulses is praise sensitive and drops at higher rates as people look for alternatives then. "It is mostly small scale Dal mills that are engaged in the business of dal processing. They sell pulses as small registered brands into the regional markets," Agarwal said.
Dal mills purchase raw pulses from the market and then process it into dal of various grades. Sixty per cent out of which comes out as dal while 25 per cent goes as cattle feed and the rest is waste, experts said. There are 175 dal mills in Indore and 800 in Madhaya Pradesh.
Industry players said pulses are an essential commodity and should be kept out from the tax bracket. Taxing branded packaged pulses at a time when "farmers are not get proper remuneration" will hit industries and farmers.
Another dal owner said, "Maintaining the quality of dal is an expensive affair as we have to update to modern technology. Levying tax on packaged pulses will kill the business." Members of All India Dal Mills Association gave memorandum to the union minister of state for finance and corporate affairs Arjun Ram Meghwal to reconsider the decision and exempt packaged branded pulses from the tax bracket.