Madhya Pradesh: Shadows of uncertainty hang over Mandis after tax cut

Income has declined; may incur loss of Rs 200 crores in three months.

Staff ReporterUpdated: Tuesday, December 01, 2020, 10:29 PM IST
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Mandi/ Representative Pic |

Shadows of uncertainty have begun to hang over the Mandis after the state government reduced tax from Rs 1.50 to paisa 50.

The government implemented the decision from November 14 this year. The Mandis have begun to incur loss after the above decision.

Income of the Mandis has also declined. The traders, however, told the government that reduction in tax would increase the income of Mandis.

The reduction has been given for three months. If the income of Mandis continues to decline, the loss will approximately shoot up to Rs 200 crore in three months.

The Mandis earned Rs 1,200 crore last year. As the tax has been reduced by one third of the original amount, the earning will be Rs 100 crore in three months.

In the present situation, the tax may not be as high as is as is expected in three months.

Because of the tax reduction, the income of the Mandis has come down by just half daily.

There is, however, no enthusiasm among farmers about the cut in Mandi tax.

A sum of Rs 677 crore is annually spent on salary and allowances of Mandi employees. Decline in Mandi income caused by the cut in tax may impact the salary and allowances of the employees.

According to commissioner of Mandi Board Sandeep Yadav, the tax cut has been given to traders only for three months.

As the Mandi Board has enough money, there is no problem about the staff salary for now, Yadav said.

He said the traders had assured the government that the income of Mandis would increase if the tax was reduced, and that there would not be any loss.

How much loss the Mandis have incurred will be estimated only after three months, Yadav said.

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