Bengaluru: With the Goods and Services Tax (GST) era set to be rolled out on July 1 auto majors have been offering huge discounts, upto few lakhs on their vehicles. But contrary to this, prices of rice has seen a steady rise on daily basis over last one-week thanks to the GST fear.
According to highly placed sources in the state agriculture and commercial tax department rice may become dearer by Rs. 3 to Rs. 5 based on their rates post GST implementation.
According to the sources, under GST, 5% tax will levied on branded and rice sold under trademark. Under the existing state tax structure there is no such tax. Sales tax of Rs.1.50 per kilo gram imposed by the state government will continue along with this 5% tax. As a result, rice price expected to skyrocket.
Speaking to newskarnataka, an officer from the state agriculture department informed that this new tax of 5% will hit both farmers and consumers equally. “We have raised the issue with the union government,” he said.
