Punjab Minister for higher VAT on imported vanaspati

Chandigarh, May 31 (UNI) Punjab Cooperation Minister Capt Kanwaljit Singh today urged the Punjab Chief Minister to impose higher VAT on imported vanaspati.

He also asked for the withdrawal of enhanced Central Sales Tax (CST) on vanaspati and exempt VAT on de-oiled rice bran and cakes.

These measures were needed to rejuvenate the vanaspati/edible oils, solvent extraction and cattle feed industry, both in the cooperative and private sector in the state, he said in a letter to the Chief Minister.

Capt Singh, who has earlier held Finance portfolio, said that due to unhealthy competition from duty free import of vanaspati from Nepal and Sri Lanka, increase in CST and imposition of VAT on de-oiled cakes on the local industry, vanaspati/edible oil industry in the state was passing through a crisis.

He pointed out that due to bilateral free trade agreements, vanaspati when imported from Sri Lanka and Nepal attracted zero duty.

Crude palm oil, he said, carried a custom duty and cess of 53 per cent in India, but was available to Nepal at zero duty and to Sri Lanka at only 25 dollar per MT. As a result, the cost of vanaspati produced in India was higher by Rs 10,000 per MT while the end price for consumers continued to be the same.

Middlemen were reaping huge profits from imported oil while damaging local producers, he added.

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