Tea sector at Mitra door seeking tax relief

TT, Siliguri, June 22: Stakeholders of the tea industry have written to minister Amit Mitra, who is the chairman of the empowered committee of finance ministers of different states on Goods and Service Tax (GST), requesting that the sector be exempted from GST or a rate lower than the proposed lowest rate be implemented.

"The central government is expected to get the GST bill passed soon and it will bring about a thorough change in the indirect tax pattern across the country. We pay such taxes, including VAT (Value Added Tax), which amounts to around 5 per cent (of the total sales). The lowest proposed GST rate is around 12 per cent. Even if the lowest rate is implemented in the tea industry, it would mean an additional economic burden on us," Prabir Bhattacharjee, the secretary general of the Tea Association of India, told The Telegraph over the phone from Calcutta.

"Adarsh Kanoria, our president, has written to the state finance minister, Amit Mitra, mentioning that tea should be considered as an agricultural produce and exempted from GST," he added.

Sources said the letter had been sent to Mitra last week.

Stakeholders said around 10 million people were directly or indirectly earning from the tea industry and another 20 million were involved in ancillary activities related to the sector.

"Around 50 per cent of the employees are women. The sector also contributes to socio-economic development of remote and under-developed areas like the Northeast. We believe that the empowered committee and the central government will consider these factors while taking a decision," Bhattacharjee said.

"It would be best if the GST is waived. If not, the rate should be brought down from 12 to 5 five per cent so that we do not face the challenge of additional financial burden," he said.