Salt makers in Gujarat oppose new tax

The salt manufacturers in Gujarat, where more than 75 per cent of the country's salt is made, are unhappy with the state revenue department's decision to collect non-agriculture land use tax. They claim that this additional tax at the rate of 10 paise per sq mt would double the tax burden of salt makers. A majority of Gujarat's salt makers are small players.

The Indian Salt Manufacturers' Association (ISMA) has made representations to state Revenue Minister Anandi Patel and Salt Industries Minister Saurabh Patel, demanding that the government rescind its decision of additional land use tax. They are hopeful that the government will agree. "Land allotted for salt production is generally waste land or unsurveyed land. It was never agriculture land. Thus, non-agriculture land use tax is not applicable to this land," said ISMA President P N Rao.

"At present, tax per hectare, including land lease and other local taxes, varies between Rs 1,000 and Rs 1,600, depending on the region. If this new NA tax is imposed, it will double the tax per hectare," he explained.