Biju Janata Dal Demands 18% GST Waiver on Kendu Leaf
By: Admin|August 06, 2024|Categories: GST Recent News
On August 5, the Biju Janata Dal (BJD) strongly criticized the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government for failing to address the longstanding demand to waive the Goods and Services Tax (GST) on Kendu leaf. The Kendu leaf, a minor forest product, is a crucial source of income for around 1.5 million pluckers, binders, and seasonal workers in Odisha. The imposition of an 18% GST on Kendu leaf has been a point of contention, adversely affecting trade and harming the poorest communities in the forest fringe areas of the state.
Economic Impact on Local Communities
Sanchit Mohanty, a former advisor to the Kendu Leaf Welfare Board, emphasized the importance of Kendu leaf to the local economy. “Kendu leaf is the financial backbone for 15 lakh Kendu leaf pluckers, binders, and seasonal workers,” he stated. The high GST rate is detrimental to these communities, which rely heavily on this product for their livelihoods. Despite the Kendu leaf’s significance, the BJP government has overlooked the request to waive the GST, even as it reduced tax rates on other products in the recent budget.
The Disproportionate Burden on Women
The majority of Kendu leaf pluckers and binders are women, making the impact of the GST even more severe. Mr. Mohanty pointed out that in 2019, the BJP had promised to completely waive the GST on Kendu leaf, but this promise has not been fulfilled. “The BJP has failed to fulfill its promise though it is in power both at Centre and State,” he added, highlighting the government’s neglect of women’s economic empowerment in these communities.
BJD’s Consistent Opposition
The BJD has consistently opposed the imposition of the 18% GST on Kendu leaf. Former Chief Minister Naveen Patnaik previously wrote to Union Finance Minister Nirmala Sitharaman, urging the withdrawal of the GST to protect the interests of the state’s vulnerable populations. The BJD argues that while the central government has reduced GST rates on other products, it has left the Kendu leaf tax rate unchanged, which is unjust.
Priyabrata Majhi, a spokesperson for the BJD, compared the GST rates, noting the inconsistency in the government’s tax policies. “When only 3% GST is imposed on jewellery including gold and other precious stones and 5% on air travel, the 18% GST on Kendu Leaf does not sound logical,” he stated. This disparity raises questions about the government’s commitment to supporting local economies and protecting the livelihoods of marginalized communities.
Demand for Immediate Action
The BJD is calling for the BJP-led state government to advocate for a waiver of the GST on Kendu leaf. The removal of this tax is seen as crucial for the overall benefit of tribal communities and other marginalized groups dependent on Kendu leaf for their survival. The party urges the government to honor its commitments and consider the socioeconomic implications of the GST on Kendu leaf.
Conclusion
The demand for a waiver of the 18% GST on Kendu leaf reflects broader issues of economic justice and support for vulnerable communities in Odisha. The Biju Janata Dal’s criticism of the BJP government highlights the urgent need for policy changes that prioritize the welfare of local populations, particularly women and tribal communities who rely on Kendu leaf for their livelihoods. As the debate continues, it remains to be seen whether the government will respond to these calls for action and provide the necessary relief to those affected by the tax.
KenduLeaf #GSTWaiver #BJD #BJP #Odisha #EconomicJustice #WomenEmpowerment #TribalRights #LocalEconomy #ForestProducts #PoliticalDebate #SocialImpact #SanchitMohanty #PriyabrataMajhi #NaveenPatnaik #NationalDemocraticAlliance
