Centre grants VAT exemption to walnuts

Srinagar, Oct 1 (UNI) The Centre's Empowered Committee on Value Added Taxes (VAT) has granted tax exemption to walnuts, a decision which will fulfill a long-pending demand of fruit growers in Jammu and Kashmir, A statement by Finance, Planning, Law and Parliamentary Affairs Minister of the state Tariq Hameed Karra said the decision was conveyed to him yesterday.

Mr Karra had forcefully sought VAT exemption for walnuts at the Empowered Committee meeting in New Delhi on September 24.

He had urged the committee to consider placing walnuts, a fruit providing livelihood to a large number of growers in Jammu and Kashmir, in the zero per cent schedule under the VAT regime.

He told the Empowered committee that this would provide relief to a large number of growers who otherwise fall prey to the machinations of the intermediaries.

The committee had assured to look into the matter and after deliberations it was decided that given the strong argument by the Jammu and Kashmir government, walnuts would be placed under the zero per cent rate schedule.

The statement said the Finance Department yesterday also extended VAT exemption on pulses, wheat and flour till March 31 next year.

The exemption on these items was due to expire on September 30.

The traders had requested the Finance Minister to grant extension in exemption period.

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