Andhra Pradesh - Others   

Farmers' body submits plea to Finance Minister

Special Correspondent

The memorandum highlights the socio-economic burden that VAT imposes on farmers

NEW DELHI : Leaders of the Federation of Farmers Associations, representing 14 cigarette tobacco growing associations of Andhra Pradesh and Karnataka, have submitted a memorandum at the Finance Minister's office expressing concern over the proposed imposition of VAT (value--added taxation) on tobacco from the next financial year.

The representation highlights the tremendous socio-economic burden that VAT will impose on the farmers.

The farmers said cigarettes were already a highly taxed product, attracting excise and State taxes close to 140 per cent, a statement said.

Tax on tax

"Till now the tobacco farming community has not fallen a victim to the mass suicides of farmers which have been pervasive in Andhra Pradesh and Karnataka. The imposition of VAT on cigarette tobacco — which is nothing but a tax on tax — will seriously threaten the livelihoods of around seven lakh cigarette tobacco farmers and 30 lakh family members in Andhra Pradesh and Karnataka. Past experience tells us that a significant increase in tax on cigarettes has resulted in a drastic drop in income of cigarette tobacco farmers," Sivaram Prasad, General Secretary, Tobacco Growers Welfare Association said.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

CIs transferred in Warangal, Adilabad
Transco officials foresee grim situation
No change in quota for wards: Election Officer
Official pulled up for delay in paying wages in Kadapa
Hectic schedule awaits Governor
Farmers' body submits plea to Finance Minister
ST panel reviews schemes
Be helpful, officials told
Officials told to identify works under NREGS
Transco concedes five demands
Dharna staged
Plea to install statue of Mala Mahanadu leader
Bandh for IIT successful

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu