BJD criticises 5 pc GST on Kendu leaves, reiterates its demand for total tax exemption

Bhubaneswar, Sep 4 Biju Janata Dal (BJD) on Thursday questioned the GST Council's decision to reduce the tax on Kendu leaves from 18 per cent to 5 per cent, reiterating its demand for complete abolition of taxation on the product.

Speaking to media persons, senior BJD leader Debi Prasad Mishra said that Odisha has been protesting against the imposition of 18 per cent GST on Kendu leaves since July 1, 2017.

He said that most of the people involved in the Kendu leaves trade belong to poor and tribal communities.

He said that former Chief Minister and Leader of Opposition (LoP) Naveen Patnaik had also written a letter to the Union Finance Minister Nirmala Sitharaman in 2022, urging her to completely waive the 18 per cent GST on Kendu leaves.

He added that similarly, the BJD supremo again, in another communication, placed similar demands in June 2023 as well. This demand has also been raised several times in the state assembly and the parliament by the BJD. Though GST on Kendu leaves has been reduced from 18 to 5 per cent, it should be completely waived.

Mishra also questioned the GST council's decision to include finished products made from Kendu leaves under the 40 per cent GST category.

“Even if the GST on Kendu leaves is reduced to 5 per cent, will it not be double taxation. This will ultimately have a socio-economic impact on the Kendu leaf pluckers. So, we demand to make it zero for Kendu leaves,” said Mishra.

He also highlighted various initiatives taken by the previous Naveen Patnaik-led BJD government for the welfare of Kendu leaf pluckers.

Mishra also demanded that the Union Government compensate the state for the estimated annual revenue loss of around Rs 10,000 crore, as projected by economists, due to the reduction in GST on various goods and services.

The BJD also criticised the state and union government for not completely waiving the GST on the handloom sector.

BJD leader and former Finance Minister Niranjan Pujari said that many poor weavers depend on the handloom for their livelihood. He demanded that the union government separate the handloom from the power loom and completely waive the GST on the handloom sector.

--IANS

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