New Delhi, Dec 1 (UNI) Indian Biscuits Manufacturer's Association (IBMA) has demanded the reduction of value added tax (VAT) from existing 12.5 per cent to four per cent in order to give a fresh lease of life to the industry.
''Higher VAT is resulting in low demand pick-up and subsequent losses to the biscuit industry. We have made a plea to reduce the rate of VAT on biscuits to four per cent,'' IBMA President B P Agarwal said here.
He said the association has submitted representations to the Chief Ministers, Finance Ministers of all state governments, and to Mr Asim Dasgupta, Chairman, Empowered Committee on VAT.
Mr Agarwal also pointed that Assam has already reduced VAT to four per cent for encouraging biscuit manufacturing.
He added that other state governments should also favourably consider IBMA's representation for fixing four per cent VAT.