Members of Labour Law Practitioners’ Association have demanded the proposal to levy service tax on rice be withdrawn as it would add to consumers’ burden. The association’s president N.G.R. Prasad said the Union government’s move to bring rice under the service tax regime with a levy of 12.33 per cent would be a huge blow to people. The commodity has been removed from the list of agricultural produce and a levy of service tax would add to people's woes.
The association members said the government would also have to bear an additional burden on its exchequer by providing rice at a subsidised rate through the public distribution system.
