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Remove VAT on perishable goods, Centre tells states
October, 16th 2008

Union Minister of State for Food Processing Industries Subodh Kant Sahai today urged the states to remove Value Added Tax (VAT) on perishable goods and peg it below four per cent on non-perishable items to encourage food processing industry.

"Around 15 companies have already brought in 106.4 million US dollar foreign direct investments into the country's food processing sector," Sahai said while addressing Investors' Meeting for Development of Food Processing Sector in Andhra Pradesh.

The meeting was jointly organized by the Central Department of Food Processing Industries and the Food Processing, Agricultural Marketing and Cooperative Department of Andhra Pradesh.

The post-harvest management industry was expected to attract around Rs One lakh crore over the next five years, the Minister said.

With this, India can become a food factory with products 'made-in-India' and 'made-for-India,' he said.

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