No decision was taken on rolling back 5 per cent VAT imposed on industrial salt during a meeting between the representatives of salt manufacturers in Gujarat and state Finance Minister Saurabh Patel on Wednesday.
After the meeting, Bachubhai Ahir, spokesperson of Namak Satyagrah Samiti — a group representing the salt manufacturers, said the government “appeared” to be “very positive” on the group’s representations. Senior officials in the Finance Department were also present in the meeting.
Ahir expressed hope that the government would soon take a decision in the matter.
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Saurabh Patel said that he heard grievances of the salt manufacturers, but no decision was taken. In its budget for 2016-17, the Gujarat government had introduced 5 per cent VAT on industrial salt aiming revenue generation of Rs 5 crore.
This was for the first time that tax on salt production was levied by the Gujarat government. Gujarat is the largest salt manufacturer in India, contributing around 80 per cent of total production.