Press Trust of India / Kolkata Jan 08, 2010, 19:24 IST
The Union Minister for Food Processing Subodh Kant Sahai today said Value Added Tax rates or Goods and Services Tax rates (when it will be in place) on processed food should be between zero to four per cent.
Speaking at the North-East summit organised by the Indian Chamber of Commerce, he said that if processed food were taxed at higher rates, then the food processing industry would not be viable for investors.
Sahai said that he had urged Asim Dasgupta, chairman of the empowered committee of state finance ministers on GST, to keep these products in the above mentioned taxation bracket.
Once the production level of processed food increases to 50 per cent from the present level of 10 per cent, tax rates could then be increased.
Sahai said that the ministry had set an investment target of Rs 1 lakh crore in the food processing sector by 2015.
The minister also said each north-eastern state should come up with a thorough policy to promote horticulture in the region.
He said there was a need for demand-driven farming and investors should be offered incentives.
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