Cotton Copra and Vegetable Oils Cess (Abolition) Act,1987
Act No : 4
Section : PRELIMINARY
COTTON, COPRA AND VEGETABLE OILS CESS (ABOLITION) ACT, 1987
4 of 1987
21st March, 1987
STATEMENT OF OBJECTS AND REASONS At present under the Produce Cess Act, 1966, cess on cotton is being levied at the rate of one rupee per bale of 181.4 kilograms of cotton and in the case of unbailed cotton, at the rate of 28 paise per 50 kilograms of cotton, consumed in any mill. The average annual collection of cess on cotton is to the tune of Rs. 64 lakhs. The proceeds of this cess are utilised to meet the expenditure incurred in connection with measures to promote the improvement, development and marketing of produce under the Act, which includes cotton. Similarly, cess on copra is being levied under the Copra Cess Act, 1979at the rate of five rupees per quintal of copra, consumed in any milk The collection of cess on copra is of the order of about Rs. 70 lakhs per annum. It is the main source of finance for the Coconut Development Board set up under the Coconut Development Board Act, 1979. Cess on vegetable oils is also being levied at the rate of five rupees per quintal of vegetable oil under the Vegetable Oils Cess Act, 1983.
The estimated total collection from the cess on vegetable oils is of the order of about Rs. 7 crores per annum. It is the main source of finance for the National Oilseeds and Vegetable Oils Development Board set up under the National Oilseeds and Vegetable Oils Development Board Act, 1983.
2. As an endeavour to reduce the number of cesses and multiplicity of taxes, it is proposed to abolish the cess on cotton, copra and vegetable oils and provide necessary funds through budgetary allocations for the plans and programmes for the development of produce.
3. For the purpose of abolition of the cess, it is proposed to amend the Produce Cess Act, 1966 and repeal the Copra Cess Act, 1979 and the Vegetable Oils Cess Act, 1983. The amendments made to the Coconut Development Board Act, 1979 by clause 10 of the Bills is of a consequential nature. A provision is also being included in the Bill (vide clause 13) for the recovery of uncollected cess.
4. The Bill seeks to achieve the above objects. -Gaz. of India, 8-12-86, Pt. II, S:2, Ext. p. 33. (No. 58).
An Act further to amend the Produce Cess Act, 1966and the Coconut Development Board Act, 1979and to repeal the Copra Cess Act, 1979and the Vegetables Oils Cess Act, 1983. Be it enacted by Parliament in the Thirty-eighth Year of the Republic of India as follows:-
CHAPTER 01: PRELIMINARY
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