Advance tax likely to hike prices of essential commodities
The prices of essential commodities, including rice and lentils, may witness a hike
The proposed budget for the 2020-21 fiscal year mentions a 2 percent advance tax for the wholesale trades of some food products at the local level.
This tax is likely to hike prices of essential commodities. The prices of essential commodities, including rice and lentils, may witness a hike.
According to the budget proposal, traders of rice, wheat, potato, flour, salt, edible oil, sugar, dates, lentils, ginger, garlic, cinnamon, cardamom, cloves and all kinds of fruits will have to pay 2 percent in advance tax.
Other than the essential commodities, jute, computer or computer parts, cotton and yarn are also on the list.
Under the existing income tax law of National Board of Revenue, these products were exempted from the advance tax in the 2019-20 fiscal year.
