The Assam government has waived green leaf cess for the tea industry for three years till 2021.
On Wednesday, finance minister Himanta Biswa Sarma said the tea industry of Assam is going through a lean phase due to stiff competition in the international market, coupled with other factors.
“In order to boost and revive the tea industry of Assam, I propose to keep in abeyance the levy and payment of tax on green tea leaves under the Assam Taxation (On Specified Land) Act, 1990, for a period of three years with effect from January 1, 2019 till December 31, 2021,” he said.
This has been one of the major demands of the tea industry in Assam for a long time. The green leaf cess for big growers is 40 paise per kg .
In Assam, out of the total production of green tea leaves, 42 per cent is produced by small tea growers.
The Joint Forum of Assam Tea Planters’ Association, North Eastern Tea Association and the Bharatiya Cha Parishad have thanked chief minister Sarbananda Sonowal and Sarma for keeping green tea leaf cess in abeyance for a period of three years and also for initiating welfare measures for the tea community.
“This is a huge relief for the tea industry when it is going through a period of crisis,” a senior tea industry official told The Telegraph.
S.K. Barua The Telegraph picture
Overall, the industry in Assam has welcomed the state budget.
Chairman, Ficci, Assam state council, Ashish Phookan, said: “This is a development-oriented budget. Particularly two important decisions — raising of the threshold limit for GST registration to Rs 40 lakh and revision of the annual turnover limit for availing Composition Scheme under GST to Rs1.5 crore —will help many small businessmen.”
Phookan said Asom Darsan and Asom Mala schemes will boost the tourism industry.
He also congratulated the government on the initiatives for infrastructure development. “We welcome the attention the tea industry has received in the budget, particularly at a time when it is going through a difficult time,” Phookan said.
Chairman, CII North East Council, S.K. Barua, said: “It is a welfare-oriented budget. We appreciate the increase in the GST threshold limit in Assam.”
