By IANS,
New Delhi: The central government will continue to provide exemptions and rationalise tax structure for food processing units to boost its growth, it was announced Tuesday.
Food processing units are given 100 percent income tax exemptions during the first five years of their operations, said an official statement released Tuesday.
Exemptions are provided on profit from the business of processing, preservation and packaging of fruits or vegetables. Processing of meat, meat products, poultry, marine and dairy products also enjoy exemptions from income tax.
“As far as customs, central excise duties and service tax are concerned, the central government has extended a slew of concessions to provide a fillip to the food processing sector in India,” the statement said.
In the current financial year’s budget, the union government announced ‘project import’ status for food processing industry, which allow imports at a concessional rate of five percent basic customs duty.