GST council recommended reduction of tax rate of Ethanol from 18 % to 5 %

Union Minister for Consumer Affairs, Food and Public Distribution Shri Ram Vilas Paswan said that Centre is taking various steps to help the Sugar Industry which is facing depressed market sentiments and crash in sugar prices, the liquidity position of sugar mills has been adversely affected, leading to accumulation of cane price dues of farmers which have reached to more than Rs. 19,000 crore. Central Cabinet has approved financial assistance of Rs. 5.50 per quintal of cane crushed in sugar season 2017-18 to sugar mills to offset the cost of cane, in order to help sugar mills to clear dues of farmers. Further, to facilitate and incentivize export of surplus sugar by sugar mills, Government has allowed Duty Free Import Authorization (DFIA) Scheme in respect of sugar. In a bid to give boost to Ethanol, there was a proposal to reduce the Goods and Service Tax slab. The GST Council in its meeting held in New Delhi yesterday has recommended to reduce the GST rate from 18% to 5%. Shri Paswan was addressing a press conference in Mumbai today.