Rajasthan Sugar Trade Association urges government to remove mandi tax on sugar

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Jaipur: Sugar traders in Rajasthan claim that the state government is losing around 300 crores of GST annually as the state continues the mandi tax of 1.6 per cent which generates revenues around Rs 44 crore. Even after GST came into effect, the Rajasthan government continues to charge the mandi tax on the sugar brought from other states.

According to the traders, this has increased the price of sugar in the state and it has not only put a burden on consumers but also investors planning to set up plants for FMCG products like biscuits, confectionery and beverages are showing no interest.

They claim, the buyers from Rajasthan in order to avoid tax, use neighbouring states as delivery points. This deprives the local government of SGST. There is a 5 per cent GST on sugar which is divided between states and the Centre.

In order to avoid loss, Satyanarayan Chitlangia, president of Rajasthan Sugar Trade Association urged the government to abolish mandi tax. He said sugar traders are facing losses due to this.

Chitlangia said, ” The government data indicates a decline in the arrival of sugar in the state over the years, whereas it should go up. This also indicates the decline in the tax collection. It is clear that traders get supplies in Rajasthan, but the address is given as neighbouring states to escape the tax.”

“Government has received Rs 44 crore mandi tax in 2018-19 but has lost Rs 300 crore as buyers show neighbouring states as supply addresses,” he further added.

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