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Sales tax on maida withdrawn, bread to be cheaper

In an effort to reduce prices of bread, Maharashtra government on Thursday decided to withdraw the 4 per cent sales tax on Maida.

This was announced by Chief Minister Vilasrao Deshmukh after a cabinet meeting.

The government also withdrew one paisa tax per bidi levied earlier to utilise the money to offer subsidized housing for workers in bidi industry, Deshmukh said, adding that it was now mandatory for bidi unit owners to pay minimum wages fixed for the workers.

The tax withdrawals would cost the government an estimated Rs 320 million, he said.

In a related development, Centre agreed to consider a Shiv Sena proposal for making available wheat at concessional rates to bread manufacturing units in the small scale sector to enable them sell bread at cheaper prices.

Food and Civil Supplies Minister, Shanta Kumar, gave assurance to this effect yesterday to a two-member Sena delegation consisting of Union Minister Manohar Joshi and party MLC, Kanhaiyalal Gidwani, who is convenor of Shiv Sena's action committee on essential commodities.

Gidwani told reporters in Bombay that supply of maida at a cheaper rate would make 'pav' and sliced bread available at a price of 50 paise and Rs 9, respectively.

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