State to reduce taxes on crushing of sugarcane’s
15 February 2021, New Delhi, IN: In its bid to extend financial support to sugar mills, the state government has proposed to reduce taxes on crushing of sugarcanes in the current fiscal. The relief would be offered in by way of reduction in commission to the regional development councils and partial waiver in the Goods and Services Tax (GST).
An assurance to this effect was given by sugarcane industries minister Pramod Kumar on Saturday, when a delegation of Bihar Sugar Mills Association (BSMA) met him with several demands to recover existing sugar mills from financial crisis.
BSMA secretary Naresh Bhatt said, “The government has agreed to reduce the regional development council commission on crushing of sugarcane to 0.20% from the existing 1.80% of the amount.” He said that the department also gave assurance to waive off tax on purchase of sugarcane after implementation of the GST on crushing of sugarcane.
He said that the sugarcane industries department has also decided to increase the minimum support price (MSP) on all varieties of sugarcane by ₹5 per quintal. The mills would purchase the best quality sugarcane from farmers at ₹ 315 per quintal at the mills’ entrance, while the medium quality would be paid ₹295 per quintal. The lower quality of sugarcane would fetch ₹272 per quintal to the farmers.
Millers have been authorized to purchase sugarcane from the farmers from the field or market at ₹ 20 lower than the MSP at the mills’ gate.
