From: Rajendra Khuba, rskhuba@gmail.com
To: toBudgetTwentyTen@gmail.com
Date: Mon, Feb 8, 2010 at 2:05 PM
Subject: Taxing on agro producducts
Sir,
We appreciate you for your ideology of making our country a better place. For the budget 2010.Excise duty on agriculture products like sugar and its negative impacts:- Chapter 17 of Central Excise Tariff The duty on Khandsari sugar is NILKhandsari uses obsolete technology of open pan evaporation the negative aspects are:- Lower recovery of sugar and low quality sugar.High pollution Uses power from grid.Classified as negative industry as per industries & commerce.Uses obsolete technology and reduces the sugar output per ton of cane grown. The duty on Sugar plants is 16%. Where as new sugar use plants vacuum pan and the benefits are:- Extract higher quantity sugar. Pollution is negligible in comparison with khandsari unit. Power is generated using environment friendly renewable source and are able to produce additional power for other industries.Increased output per ton of sugar. Question: Why should similar products be taxed differently. Note here lower grade human direct consumption product is not taxed where as better products are taxed. What government should do:- Remove all taxes on farm products which are used by common man.Make fund available for agro based industries at cost effective prices.Remove red tapes, like permissions etc for speedy setting of agro based industry.To promote agriculture, the govt has to promote the processing units so that the farmers are benefited by way of better price there by reducing the wastage of agro produces. If required the govt may tax liquor, tobbaco, polluting units to cover the duty shortfall rather than tax the common man and make India produce agri products in its fullest scale rather than importing food products and loosing our foriegn currency.Hope you will bring to notice the above.
Regards,
Rajendra.S.Khuba.
Mahamani,
Khuba plots,
Gulbarga – 585102.
Ph No: 91-8472-256455.
HP: 9886656013.
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