Twin tea sweeteners

AVIJIT SINHA, TT, Siliguri: Bengal finance minister Amit Mitra on Wednesday announced two major waivers for tea, offering relief to the industry fretting about rising production costs and falling prices.

Mitra, who tabled the budget for 2018-019 in the Assembly, said the state had decided to completely waive agricultural income tax on tea. He also announced continuation of a waiver of two kinds of cess linked to the quantity of tea leaves.

"...The tea industry in the state has been in dire straits. I propose to fully exempt gardens from agricultural income tax for 2018-19 and 2019-20," Mitra said.

Sources in the tea industry said the tax rate was 30 per cent. "For tea estates, the total profit is divided into two components as the business has both agricultural and industrial activities. While corporate tax is imposed on 40 per cent of the profit, agricultural income tax is imposed on the remaining 60 per cent," said Prabir Bhattacharjee, secretary, Tea Association of India.

"Since we have five tea estates, we will benefit," said Debasish Jana, CMD, Andrew Yule.

Unlike estates, small tea growers pay only agricultural income tax. "It had been our long-standing demand that the state should waive this tax," said Bijoygopal Chakraborty, president, Confederation of Indian Small Tea Growers' Associations .

Others also welcomed the relief. "At a time the cost of production is on the rise, it is a welcome move," said S. Guha Thakurta, secretary of the Indian Tea Association's Dooars branch.