Rajasthan exempts imported sugar from VAT -Governance Now

Rajasthan exempts imported sugar from VAT

State government announces tax exemption on imported sugar to tide over shortages

PTI | January 29, 2010

With a view to control spiralling price, the Rajasthan government has announced VAT exemption on imported sugar in the state till June 30.

"The decision to exempt four per cent VAT was taken by Chief Minister Ashok Gehlot on Thursday, which sugar price will go down by Rs 1.6 to 1.8," an official said.

Sugar prices are ruling between Rs 41-43 a kg in the state.

"The government has exempted the tax in view of rising prices. After June, further decision will be taken after a review of situation," the official added.

The prices of the sweetener has doubled since January 2009 and currently hovering around Rs 45 a kg in the country on expected fall in sugar production this year.

India, the world's largest consumer of sugar, is estimated to produce nearly 16 million tonnes of sugar against the annual demand of 23 million tonnes. The gap of 7 lakh tonnes is being met through imports.

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