Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Thursday, urged Union Finance Minister and GST Council Chairman Arun Jaitley for reduction of GST on Kendu leaves.
In a letter, Naveen mentioned that Kendu (Tendu) leaf, a Minor Forest Produce (MFP) is the financial lifeline of the tribal people of Odisha. The tribal people collect the leaves as part of their right defined under Schedule Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products, he added.
In the interest of a large cross section of the people dependent upon Kendu (Tendu) leaves for their livelihood, Naveen requested to place the matter in the next meeting of GST Council and consider reduction of GST on Kendu leaves from 18 per cent to five per cent.
After the implementation of GST from July, 2017, 18 per cent GST is levied on Kendu leaf. Earlier, there used to be five per cent VAT. This hike from five per cent to 18 per cent is very high, said Naveen.
He also said due to such a hike in the GST rate, thousands of quintals of Kendu leaves are still lying at different go-downs. This has led to a drop in the selling price of Kendu (Tendu) leaves sold by the 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, Naveen added.
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