For Quick Alerts
For Daily Alerts

    Centre to Levy 1% Agri Cess On Luxury Items To Fund Agriculture Subsidy


    In order to fund the subsidy to the farm sector, the GST Council is mulling over the proposal to implement and levy 1% agriculture cess on luxury items. The sugar industry is to meet huge amount it ows to the sugarcane farmers and the amount has spiked to unsustainable levels.

    Centre to Levy 1% Agri Cess On Luxury Items To Fund Agriculture Subsidy

    As per sources, Assam finance minister with the GoM will consider whether or not a separate agriculture cess can be levied under the new GST regime which has further subsumed all cesses, surcharges, taxes and other levies.

    The earlier proposal to implement sugar cess has been done away with and the new proposal will be put before the GST Council in its next meet scheduled for July 21.

    Earlier the GoM was formed to consider the levy of cess of Rs. 3 per kg of sugar over and above 5% GST. Also, it has been notified that after the minimum support price for sugar has been revised higher to Rs. 29 per kg, the arrears which were due to cane farmers have come down heavily by Rs. 5000 crore to just Rs. 18000 crore.

    In the next GST Council meet, the Centre will consider rate cut on items with low revenue impact such as sanitary napkins, handicrafts and handloom goods, besides certain services as per the agencies' report.

    Read more about: gst gst council
    Story first published: Thursday, July 12, 2018, 11:42 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more