LimeLightTaxation

GST Relaxation Demanded for Agrochemical Products

FICCI urged to the GST council to reduce the tax rate on agrochemicals from the current 18 per cent to 5 per cent.

Sharing is caring!

FICCI urged to the GST council to reduce the tax rate on agrochemicals from the current 18 per cent to 5 per cent.

The federation pointed out that crop protection solutions are crucial for proper management of crop health and for higher productivity.

It is also necessary for raising the income of farmers and for the sustained growth of the agriculture sector.

Addressing a press conference on ‘Policy Landscape for a Flourishing Agrochemicals Industry’, R G Agarwal, Chair, FICCI Committee on Crop Protection and Chairman, Dhanuka Group, said “high Goods and Service Tax (GST) on crop protection chemicals especially hurts small and marginal farmers by increasing their input cost and prompting them to use these essential ingredients in sub-optimal quantities to the detriment of farm output and their own financial health.”

“A GST of 18 percent on agrochemical is highly unjustified since they act as insurance to not only crop health but also increase their quality, yield and income of farmers. This high rate of 18 percent is not justified and it should be brought down to a maximum of 5 percent at par with fertilizers,” he added.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: