Chief Minister Naveen Patnaik on Thursday wrote to Union Finance Minister Arun Jaitley urging him to place the State’s proposal to reduce GST on Kendu leaves from 18 per cent to five per cent in the next GST Council meeting.
Kendu (Tendu) leaf is the financial lifeline of the tribal people of Odisha. They have the right to procure and sell these products. From beginning, 18 per cent GST is levied on Kendu leaf. Prior to implementation of the GST, 5 per cent VAT was being collected on Kendu (Tendu) leaf in Odisha, the Chief Minister mentioned in the letter.
Due to the hiked GST rate, thousands of quintals of Kendu leaves are still lying at different go- downs.
This has led to drop in selling price of Kendu (Tendu) leaves sold by Odisha Forest Development Corporation Ltd. through tender, which 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, the letter read.
“It is requested to place the proposal of reducing GST from 18 per cent to 5 per cent on Kendu leaves in the next GST Council meeting,” wrote Patnaik.
