Question : TAX ON KHADI



(a) whether the Government are contemplating of levying tax on Khadi;

(b) if so, whether any study has been made of its impact on market;

(c) if so, the details thereof;

(d) whether any study has been undertaken to estimate the production capacity and demand of Khadi in the country;

(e) if so, the details thereof; and

(f) the details of the amount of subsidy being provided to Khadi producers?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF AGRO AND RURAL INDUSTRIES (SHRI SANGH PRIYA GAUTAM)

(a): No, Sir. (b) & (c): Does not arise.

(d) & (e): While no specific scientific study has been undertaken on this subject, the production capacity and the demand for Khadi for the year 2003-04 are estimated at Rs. 565.00 crores and Rs. 705.00 crores, respectively.

(f): The amount of subsidy in the form of sales rebate and interest subsidy on bank loans provided to Khadi producers are given below :-

(Rs. in crores)
Sl.No. Items 1999-2000 2000-01 2001-02
1 Khadi Sales Rebate 140.70 90.51 70.04 2 Interest Subsidy on Bank Finance 29.87 20.40 37.10 Total 170.57 110.91 107.14