TIWN
Bhubaneswar, Nov 29 (TIWN / IANS) Odisha Chief Minister Naveen Patnaik on Thursday requested Union Finance Minister Arun Jaitley to reduce the Goods and Services Tax (GST) on 'kendu' (tendu) leaves from 18 per cent to 5 per cent.
In a letter to Jaitley, the Chief Minister requested the matter be placed in the next GST Council meeting which could consider reducing the GST on the forest produce.
He said the tribals have the right to procure and sell these products.
After the implementation of GST from July 1, 2017, 18% GST is levied on Kendu leaf. In Odisha, prior to implementation of GST, there was 5% VAT on Kendu (Tendu) leaf, Patnaik said.
"This hike from 5% to 18% is very high. Due to such hike in the GST rate, thousands of quintals of kendu leaves are still lying at various godowns. This has led to a drop in selling price of Kendu leaves sold by Odisha Forest Development Corporation Ltd. through tender," he added.
He said the drop in selling price of Kendu leaves has adversely impacted the implementation of social security and welfare schemes for 8.5 lakh Kendu leaf pluckers, seasonal workers and binding workers engaged in this trade.
- IMF expects India to rev up global growth as China falters, backs Modi government's economic policies
- realme set to shake up market: Launching fastest entry-level 5G smartphone 'C65' under Rs 10k
- India's industrial production accelerates to 5.7pc in Feb
- India records 17 pc jump to become 4th largest exporter of digital services: WTO report
- 300 pc rise in market cap to Rs 400 lakh crore in last 10 years driven by strong economic fundamentals