SME Times News Bureau | 30 Nov, 2018
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.