Moneycontrol
Feb 24, 2016 01:46 PM IST | Source: Moneycontrol.com

Budget 2016: Govt will take swift actions in implementing GST

As a fruit juice manufacturing company, we expect Government should incentivize companies coming up with innovative products such as fruit based aerated drinks etc.


In the upcoming Budget, we hope that the Government will take swift actions in implementing GST bill as it will lower production costs, ease tax burden and facilitate efficient movements of goods. Any further delay can mar industry and market sentiments.


As a fruit juice manufacturing company, we expect Government should incentivize companies coming up with innovative products such as fruit based aerated drinks etc.

On the agriculture front, the announcement to create a Unified National Agriculture Market was significant. Move towards a single national market for agri-produce will help rein in the inflationary pressure in case of food commodities. The excise duty on food items that include packaged fruits juices should remain unchanged and not hike up to 12.5 percent as speculated.


We look forward to the reduction in corporate tax rate in the forthcoming Union Budget, as announced by Hon’ble Finance Minister in the last Budget. Lastly, the government also needs to create a strong supply eco-system for food processing industry as a key sector identified under “Make in India” program.

Service tax on warehouse rent, warehouse management services, laboratory services for agro produce, agro commodity care services should be taken off. Capital subsidy for cold stores should be enhanced and extended to all capital investments in back end supply chain logistics to reduce the losses in fruits and vegetables.

The government needs to demonstrate concrete actions to revive investment, increase growth and generate employment which will give boost to the industry. We are hoping that the Government will unveil the Union Budget 2016-17 with a pragmatic recognition of macro-economic woes and a thrust towards structural reforms.

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