Bhubaneswar: Chief Minister Naveen Patnaik Thursday urged Union Finance Minister Arun Jaitley for reduction of goods and services tax (GST) imposed on kendu leaves from 18 per cent to 5 per cent.
In a letter to Jaitley, Naveen said kendu leaf, a minor forest produce (MFP), is the financial lifeline of the tribal people of Odisha.
“After the implementation of GST July 1 last year, 18 per cent GST is levied on the kendu leaves. Prior to implementation of GST, there was 5 per cent value added tax (VAT) on kendu leaves in Odisha,” he said.
Stating tax hike from 5 to 18 per cent is very steep, the Chief Minister said, “Due to such hike in the GST rate, thousands of quintals of kendu leaves are lying unsold in different godowns. This has led to drop in selling price of kendu leaves sold by Odisha Forest Development Corporation Ltd.”
He further said this drop in sale has adversely affected the implementation of social security and welfare schemes for 8.5 lakh kendu leaf pluckers, seasonal workers and binding workers engaged in this trade.
In the interest of large section of the people dependent on the minor forest produce for their livelihood, he requested the Union Minister to place the matter in the next meeting of GST Council and consider a reduction in GST on kendu leaves from 18 per cent to 5 per cent.
The tribal people collect the leaves as part of their rights defined under Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products.
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