Even though the government provides subsidy on farm equipment, the VAT imposed on the them by the state and Centre make it 12 per cent costlier. This was stated by Upkar Singh, MD of New Swan Industries and also joint secretary of Chamber of Industrial and Commercial Undertakings, who got the first prize in farm implementation sector in PAU Kisan Mela, which concluded Saturday.
"The state has imposed 5.75 per cent VAT while central VAT is 12.36 per cent on the raw material used in making equipment. We have urged the government to waive off this tax so that farmers can get cheaper equipment," Singh said.
The company had put up equipment like straw bailer, straw rack roto seeder made in stainless steel, spreader, besides high-quality rotavators etc at their stall in the mela.