Excelsior Correspondent
JAMMU, May 29: Bari Brahmana Industries Association (BBIA) urged the Government and Finance Minister to reduce the VAT on soft drinks from the current taxes of 13.5 per cent to 5 per cent, to save the industry.
In a memorandum to Finance Minister Abdul Rahim Rather, president, Bari Brahmana Industries Association (BBIA), said that that the soft drink industry is facing problems due to the current taxes. He said the industry came in the state at a time when militancy was on peak and no industrialist was ready to invest. But after the gap of 12 years the balance sheet of the Industry is in the red due to manifold reasons, the memorandum added.
He said that the geographically State is hilly and this is attributing to a larger distribution cost as compared to other states, but unfortunately the selling price of soft drinks has not kept pace with this northward movement of the inputs.
He said that if the Industry wanted to increase the MRP, we are refrained from doing so, as it would hit the consumption heavily and volumes will fall down further in a drastic manner.
The direct and indirect employment created by the soft drink industry is to the tune of almost 4000 people in the State, which includes transporters and delivery persons in each city, town and mohalla.
If the prices are increased in comparison to increase in the input cost, then this number is bound to shrink as the consumption is going to fall and so will the tax payout.
He added that the drop out of 8.5 per cent of VAT would be compensated by the increased in the sale of products, and hence the increase in the revenue for the Government, combined with the additional employment generated due to the increase in the volume, which in turn will help the soft drink industry to sustain and re-invest in the State.
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