GulfHindi English Desk: The government is preparing to take action to reduce the prices of ghee and butter after the recent increase in the prices of milk and curd. A plan is being considered to reduce the Goods and Services Tax (GST) rate on ghee and butter by up to 7%. This reduction in GST is expected to result in a decrease in the prices of these products.
Currently, a proposal has been submitted to the government to reduce the existing 12% GST rate to 5%. This reduction is expected to bring about a 4% decrease in the prices of ghee and butter. The decision was taken due to the significant increase in milk prices, which have risen by 21.9% in the past three years. This continuous increase in milk prices is affecting the prices of ghee and butter due to the rising cost of cattle feed.
The Department of Animal Husbandry and Dairy has submitted a proposal to the Ministry of Finance to reduce the prices of ghee and butter. The proposal has also been presented to the GST Fitment Committee for consideration. The Department of Dairy has emphasized in its proposal that placing ghee in the luxury goods category and imposing a 12% GST on it would not only harm consumers but also farmers.
In addition, there is an imbalance in the GST rates on imported edible oils. While products like palm oil are taxed at 5% GST, domestically produced products are subject to double the tax. The Department of Animal Husbandry has proposed that the Ministry of Finance consider this proposal.
en.gulfhindi.com News Summary
👉The government is preparing to take action on the increasing prices of ghee and butter.
👉There is a plan to reduce the GST rate on ghee and butter by about 7%.
👉The proposal to reduce the current 12% GST rate to 5% has been submitted to the finance ministry.
👉This reduction in GST rate is expected to result in a decrease of about 4% in the prices of ghee and butter.
👉The proposal has been sent to the finance ministry by the Department of Animal Husbandry and Dairy.
👉The Dairy Department has emphasized that placing ghee in the luxury goods category and imposing a 12% GST on it will not only harm consumers but also farmers.
👉The Indian Dairy Association has pointed out the imbalance in GST rates on imported edible oils and domestically produced products.
👉The current GST rate on imported edible oils like palm oil is 5%, while domestically produced goods are taxed at double that rate.
👉The finance ministry should consider the proposal from the Department of Animal Husbandry before making a decision.
👉The current GST rates for dairy products are as follows:
👉Ghee: 12%
👉Butter: 12%
👉Paneer (Cottage Cheese): 12%
👉Lassi: 12%
👉Chaas (Buttermilk): 12%
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