Government on Thursday decided to amend the Jute Manufacturers Cess Act to raise the cess upto two per cent on ad valorem basis from a fixed 0.07 per cent to fund development and promotion of jute products. For the present, one per cent ad valorem cess would be levied on jute manufacturers until further orders, parliamentary affairs minister Pramod Mahajan told reporters while briefing about the cabinet decision.
The shift from the fixed rate to ad valorem basis will increase the collection of cess substantially and would also provide elasticity of resources, he said, adding the cess levied and collected under the Act of 1983 is used for providing funds to the Jute Manufacturers Development Council (JMDC).
The present cess on jute manufacturers is collected under the Act at a fixed rate on the quantity of jute manufactured. He said the Jute Manufacturers Cess (Amendment) Bill, 2001 would be brought for the purpose.
Bureau Report