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Home >> Budget >> Budget 2006 >> Effect Of Budget On Different Sectors >> Food processing sector

Food processing sector





Aerated drinks
  • Excise duty on aerated drinks reduced from 24 per cent to 16 per cent.

  • Packaging machines serve a wide variety of industries, including food processing and duty on packaging machines is reduced from 15 per cent to 5 per cent.

  • In order to protect the domestic vanaspati industry, the customs duty on vanaspati has been increased to 80 per cent, the rate is also applicable to crude palm oil.

  • Many food items, including packaged items, attract nil excise duty. With a view to giving a fillip to the food processing industry, it is proposed to fully exempt from excise duty condensed milk, ice cream, preparations of meat, fish and poultry, pectins, pasta and yeast. Excise duty on ready-to-eat packaged foods and instant food mixes, like dosa and idli mixes, will be reduced from 16 per cent to 8 per cent.