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VAT exemption for wheat bonus

Special Correspondent

JAIPUR: The Rajasthan Government has exempted the bonus amount payable on wheat procured from farmers at minimum support price from the purview of value added tax (VAT) and other levies. The State Government will bear a financial burden of Rs. 80 lakh to offset the exemption.

An official release here on Tuesday quoted Chief Minister Vasundhara Raje as saying that the decision would provide a significant relief to farmers. The exemption from VAT will apply to wheat procured through the Food Corporation of India till March 31, 2008. A target for procurement of 1.60-lakh metric tonnes of wheat has been fixed for this year, while the Union Food and Civil Supplies Ministry had recently announced payment of Rs. 100 per quintal as an incentive bonus on wheat procurement.

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