FICCI Seeks Reduction In GST On Agrochemicals To 5%| MENAFN.COM

Monday, 27 June 2022 06:13 GMT

FICCI Seeks Reduction In GST On Agrochemicals To 5%

(MENAFN- KNN India) FICCI seeks reduction in GST on agrochemicals to 5%

New Delhi, June 23 (KNN) FICCI on Wednesday 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.

There is also an urgent need to improve the enforcement mechanism, at several levels, to ensure the supply of high-quality agrochemicals to farmers on a sustainable basis.

The meeting scheduled to be held in Chandigarh on June 28 and 29 will be chaired by Union Finance Minister Nirmala Sitharaman. (KNN Bureau)


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