Search the Internet          Tips  Sites: Finance, Investment

Maharashtra government withdraws tax on wheat flour; bread prices remain unchanged

Bread consumers will heave a sigh of relief with Maharashtra government deciding not to implement the proposed hike of four per cent in sales tax on wheat flour and its products with effect from Tuesday.

This was disclosed by Kanhyalal Gidwani, Shiv Sena MLC and co-ordinator of India Bakers Association, at a press conference in Bombay on Tuesday.

Gidwani told reporters that the Maharashtra Chief Minister Vilasrao Deshmukh had personally informed him about his government's decision to withdraw the four per hike in sales tax on wheat flour and its products.

He said the chief minister also told him that the notification in this regard would be issued in due course.

The government's decision to withdraw the sales tax hike comes in the wake of prolonged agitation launched by the bakeries in Maharashtra. About 85 flour mills and 6000 bakeries in the state had resorted to strike in April to protest against the sales tax hike.

Nandlal Wadhwa, President of Maharashtra Roller Flour Millers Association, M Yakub, President of Bombay Bakers Association and Shahi Siddiqui, Secretary of India Bakers Association, told reporters that in view of the government's decision not to impose tax hike the prices of bread and flour will not increase in the near future.

The requirement of flour is 12,000 bags per day in the state. Each bag contains 90 kg of wheat flour.

Tell us what you think of this report