No purchase tax on rice milling outside the state

Bhopal: In the interests of farmers, Chief Minister Shri Shivraj Singh Chouhan has directed to withdraw 5 percent purchase tax on rice milling and sale of rice outside the state. Attention of Chief Minister Shri Shivraj Singh Chouhan was drawn towards this. Redressing farmers’ problem, a notification to this effect has been issued today.

The decision has been taken in view of record paddy production specially popularity and excessive production of Basmati rice in the state. Bumper paddy crop is expected in the state this year also. Due to unavailability of adequate milling facility in the state, farmers of Madhya Pradesh have to bear purchase tax on rice milled outside the state. Five percent purchase tax is levied on purchase of paddy from the state by rice mills situated outside the state. Reviewing levying of purchase tax in the interest of state’s paddy farmers, Chief Minister Shri Chouhan had directed to withdraw it. This initiative of the state government will help state’s paddy farmers get competitive price of their produce.
Implementing directives of Chief Minister Shri Chouhan, a meeting chaired by Chief Secretary Shri Anthony de Sa was held immediately and the notification in the interest of farmers was finalised. Commercial Taxes Department has issued a notification to this effect.