The Hindu Business Line : Cashew manufacturers demand special VAT status

THE Karnataka Cashew Manufacturers' Association (KCMA) has urged the State Government to grant a special status to cashew in the value-added tax (VAT) regime.

A KCMA delegation — led by its president, Mr K. Prakash Rao — which met the Deputy Chief Minister and Finance Minister, Mr Siddaramaiah, in Bangalore recently, submitted a memorandum urging him to retain cashew kernels at a four per cent slab in the VAT regime.

It said that though cashew nut is produced in a large quantity in Southern States, majority of its consumers are from Northern States. A KCMA release said here on Thursday that besides the four per cent Central Sales Tax, transactions in cashew trade will attract 12.5 per cent VAT, octroi, and other cesses. Following this, the total tax on cashew will end up at almost 20 per cent. The delegation informed the Minister that this might force the industry to shift from the organised sector to the unorganised sector.

Cluster project

Another press release said that the Karnataka Government has cleared the cashew cluster project, which was proposed by the association.

Quoting the Industries Minister, Mr P. G. R. Sindhia, the release said that Rs 15 crore has been earmarked for the cluster project. The project will help set up research and development centres, packing centres to market cashew under a common brand name, common drying yards and warehouses. The Minister has also promised to convene a meeting with the association to discuss issues related to the cashew industry.

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