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Key Points

The BJD has strongly criticized the recent GST Council decision to tax Kendu leaves at 5%, calling it inadequate for the tribal communities who depend on this trade. Senior leader Debi Prasad Mishra argued that this still constitutes double taxation, especially when finished products face a 40% GST rate. The party reiterated its long-standing demand for a complete waiver, a cause championed by Naveen Patnaik through multiple communications with the Finance Minister. They also demanded compensation for the state's projected revenue loss and a separate GST exemption for the handloom sector.

Key Points: BJD Demands Zero GST on Kendu Leaves Criticizes 5 Percent Tax

  • BJD questions GST Council's 5% tax on Kendu leaves as insufficient relief
  • Party demands complete tax exemption to aid poor tribal communities
  • Criticizes double taxation on finished Kendu leaf products at 40% GST
  • Highlights Naveen Patnaik's past letters to FM for full GST waiver
2 min read

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

BJD criticizes GST Council's 5% tax on Kendu leaves, demands full exemption to protect poor tribal pluckers from double taxation and socio-economic impact.

"“Even if the GST on Kendu leaves is reduced to 5 per cent, will it not be double taxation” - Debi Prasad Mishra"

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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Reader Comments

P
Priya S
While 5% is better than 18%, the double taxation point is valid. First tax on raw leaves, then 40% on finished products? This makes no sense for a product that supports our tribal communities. Zero GST is the right demand.
M
Michael C
Interesting to see state vs center dynamics here. The revenue loss compensation demand of ₹10,000 crore seems excessive though. There should be a balanced approach that helps tribal communities without bankrupting state finances.
A
Ananya R
As someone from Odisha, I've seen how kendu leaf collection supports entire villages. These are not luxury items - they're essential for many poor families' survival. Government should exempt all such traditional livelihoods from GST.
S
Siddharth J
The handloom sector point is equally important! Our weavers are struggling while power looms get advantages. Separate categorization and GST exemption for handlooms would preserve our cultural heritage and support artisans.
N
Nikhil C
While I support tribal welfare, complete tax exemption might not be sustainable. Maybe a 1% nominal tax would be better to maintain some revenue stream while keeping it affordable. Zero tax could lead to other complications.

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