Tax relief for sugar mills

Sugar mills will not be subjected to income tax on the payment amount made to farmers that is higher than the fair price remuneration post 2016. The decision was taken at a meeting convened by Union Minister for Home and Cooperation Amit Shah in Delhi.

A BJP delegation led by Opposition leader Devendra Fadnavis held meetings with Shah in Delhi on Tuesday and Wednesday. After two rounds of meetings this week, the Centre issued the notification.

Speaking to the media, Fadnavis said, “Sugar mills were receiving notices from income tax for three to four decades. The matter has been resolved, giving huge relief to both sugar mills and farmers. We thank PM Narendra Modi and Home Minister Amit Shah for tackling the issue. Hereafter, sugar mills will not be subjected to additional income tax for making higher than FRP payment to sugarcane farmers after 2016.”