Floriculturists seek tax waiver for greenhouse

[rgiridhar]

Floriculturists seek tax waiver for greenhouse

Hindu BusinessLine May 21, 2008


Floriculturists and greenhouse manufacturers have appealed to the Centre to treat greenhouses as agricultural input and exempt them from a cascade of taxes.

While the Government is supporting floriculture, the greenhouse, which the growers have to erect to cultivate and nurse the flowering plants, is burdened with taxes unlike other farm inputs.

Polyhouse vs greenhouse
“The Government is liberal to polyhouse but fails to regard greenhouse as the floriculturists’ version of polyhouse. So, it has imposed 16 per cent excise duty on greenhouse and 12.3 per cent service tax for on-site erection. These come on top of the four per cent VAT. The cascading effect is 33 per cent in addition to cost. So, we have appealed to the Union Agriculture Minister, Mr Sharad Pawar, to take necessary steps to treat greenhouses as agricultural inputs and exempt them from taxes”, said Mr C.M. Sane, Managing Director, Sriroz Consultants, Pune, credited with creating 70 per cent of all greenhouses in the country and exporting the technology to half a dozen countries.
Structure

Besides, the price of steel used for galvanised pipes in greenhouses has risen pushing up the cost of greenhouse for the farmers. “Steel price has risen to Rs 65,000 per tonne from Rs 45,000 last year. This has increased greenhouse cost by Rs 100 a square metre. Growers now spend Rs 600 a sq. m against Rs 450 last year to erect greenhouse, nullifying their horticulture subsidy” Mr Sane told Business Line.

Because of the cost-increase, some growers are going in for cheaper versions of greenhouse. “But, these greenhouses will not withstand weather test as they turn into hothouses and kill the plants. Quality greenhouses should have tubular galvanised structure with spacious multi-span, telescopic civil foundation, six metre headroom, 4.5 m height under gutter, leak-proof single-piece gutter, four-side openable curtains, collapsible shade net, permanent open vent of 900 mm and designed to withstand 140 km/hr wind velocity. They should come with 7-10 years guarantee. Suppliers should commit to help growers till project’s viability”, Mr Sane said.