1 VALUE ADDED TAX (VAT) ON BISCUITS

As members are aware VAT on Biscuit is Levied @12.5% in all states except Assam ( which has VAT @4%)• RecntIy the Government of Uttar Pradesh introduced Value Added Tax (VAT) under an Ordinance with effect from 1st January 2008, changing over from the Levy of Sales Tax. In the case of Biscuit, which was subject to Sales Tax @ 8% plus 1% surcharge, the State Govt has imposed Value Added Tax (VAT) at the highest rate of 12.5%.

IBMA has already represened to all Chief Ministers! Finance Ministers, and other concerned officials that VAT on Biscuit should be Levied at 4%, as Biscuit is a merit good and is a nutritious snack food hygienically processed & packaged. It is available at very reasonable prices anc consumed predominantly by children as almost a staple food. It was also pointed out that higher consumption of biscuits will lead to greater demand for agro products, like wheat, vegetable oil, sugar milk etc. Thus, growth in production and consumptioi of biscuits would benefit the farmers of these agro products. IBMA.

IBMA delegations have alrcady met Shri Asim Dasgupta, Chairman, Empowered Committee on VAT, Shri Manpreet Badal, Finance Minister, Punjab, Shri Sushil Modi, Deputy Chief Ministes& Finance Minister, Bihar Shri Stephen Marandi, Dy Chief Minister & Finance M:nister, Jharkhand , Finance Minister, Orrisa, Haryana etc. Meetings have also beeii held with Shri Pranab Mukherjee, Union Minister of External Affairs and various Members of Parliament seeking support.

With a view to highlighting the adverse impact of VAT @12.5% on Biscuit Manufacturers, majority o f whom are in the small and medium sector IRMA organized Press Conference on have been widely covered on the electronic and print media.

The Committee may review/discuss necessary further follow up action.

2 NATIONAL BISCUIT CAMPAIGN

Celebration of National Biscuit Week and National Biscuit Day in March 2008 to popularize Biscuit.
A detailed Blue Print is enclosed.
The Committee may discuss and finalize the National Campaign.

3 INCLUSION OF BISCJIT IN THE MIDDAY MEAL SCHEME.

Representation submitted to Shri Arjun Singh, Union Minister for HRD, Govt of India is enclosed.
The Committee may discuss follow up action.

4 FOOD LAWS — PFA RULES 1955

Amendments on label printing of details of nutritional Energy Value, percentage of ingredients (Notification No GSR 491 (E) Dated 20 AUGUST 2006 effective from 20 February 2008.

The Committee will be apprised.

5 REVIEW OF RAW MATERIALS! INPUTS SCENARIO

In the context of increase in cost of production of Biscuits.
The Committee may review.

6 MEMBERSHIP MATTERS.

a) Enrolment of Members
b) Membership Drive

The Committee may consider.

7 ANY OTHER ISSUE WITH THE PERMISSION FROM THE CHAIR