Why is BJD Opposing 5% GST on Kendu Leaves?
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Synopsis
BJD voices strong opposition to the GST Council's decision to lower tax on Kendu leaves. With a call for total exemption, they argue this taxation impacts marginalized communities. The call for justice echoes in Odisha's assembly and parliament, emphasizing the socioeconomic stakes at play.
Key Takeaways
- Odisha has been protesting against the 18 percent GST on Kendu leaves since 2017.
- The BJD demands a complete tax exemption instead of the current 5 percent.
- The trade primarily involves poor and tribal communities.
- Former CM Naveen Patnaik has repeatedly advocated against this tax.
- Concerns have been raised about double taxation on finished products made from Kendu leaves.
Bhubaneswar, Sep 4 (NationPress) The Biju Janata Dal (BJD) has expressed its discontent with the GST Council's move to lower the tax on Kendu leaves from 18 percent to 5 percent, reiterating its call for a complete exemption from taxation on this essential product.
During a press interaction, senior BJD leader Debi Prasad Mishra stated that the state of Odisha has been vocal against the implementation of the 18 percent GST on Kendu leaves since July 1, 2017.
He emphasized that a significant portion of those engaged in the Kendu leaves trade come from underprivileged and tribal communities.
Mishra mentioned that former Chief Minister and Leader of Opposition Naveen Patnaik had sent a letter to Union Finance Minister Nirmala Sitharaman in 2022, advocating for the complete removal of the 18 percent GST on Kendu leaves.
He noted that the BJD leader reiterated similar demands in June 2023, and this issue has been raised multiple times in both the state assembly and parliament. Despite the reduction of GST to 5 percent, there is a strong push for total exemption.
Mishra also criticized the GST Council's decision to categorize finished products made from Kendu leaves under the 40 percent GST bracket.
“Even with the GST on Kendu leaves lowered to 5 percent, is this not a case of double taxation? This will ultimately affect the socioeconomic conditions of the Kendu leaf pluckers. Hence, we strongly urge for a zero GST rate on Kendu leaves,” remarked Mishra.
He also pointed out various welfare initiatives undertaken by the previous Naveen Patnaik-led BJD government for the benefit of Kendu leaf pluckers.
Moreover, Mishra called upon the Union Government to compensate the state for the projected annual revenue loss of approximately Rs 10,000 crore due to the reduction in GST on various goods and services.
The BJD has also voiced criticism towards both state and union governments for not entirely eliminating the GST on the handloom sector.
BJD leader and former Finance Minister Niranjan Pujari stated that many impoverished weavers rely on the handloom for their livelihoods. He urged the union government to distinguish between handloom and power loom and to abolish the GST on the handloom sector entirely.
Point of View
The ongoing debate around the taxation of Kendu leaves highlights significant socioeconomic issues. The BJD's demands for complete tax exemption reflect a broader concern for marginalized communities, emphasizing the need for government policies to prioritize welfare over revenue generation.
NationPress
04/09/2025
Frequently Asked Questions
What is the current GST rate on Kendu leaves?
The current GST rate on Kendu leaves has been reduced from 18 percent to 5 percent.
Why does BJD oppose the 5% GST on Kendu leaves?
BJD claims that even a 5% GST constitutes double taxation and calls for a complete exemption to protect the livelihoods of poor and tribal communities involved in the trade.
What has been done by BJD regarding this issue?
BJD has raised this issue multiple times in the state assembly and parliament, urging the government to completely waive the GST on Kendu leaves.
Who has previously advocated for the abolition of GST on Kendu leaves?
Former Chief Minister Naveen Patnaik has previously written to Union Finance Minister Nirmala Sitharaman urging for the complete removal of GST on Kendu leaves.
What are the potential economic implications of the GST on Kendu leaves?
The taxation could lead to significant socio-economic impacts on the Kendu leaf pluckers, who primarily belong to poorer communities.
