How Will GST Reforms Benefit Kendu Leaf Pluckers, Farmers, and the Middle Class?
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Synopsis
In a significant move for Odisha, Chief Minister Mohan Charan Majhi announces that recent GST reforms will greatly benefit Kendu leaf pluckers, farmers, and middle-class families. The anticipated changes are set to enhance livelihoods and reduce costs for daily essentials, marking a pivotal step in the state's economic progress.
Key Takeaways
- GST reduced on Kendu leaves from 18% to 5%
- Increased earnings for Kendu leaf pluckers
- Lower input costs for farmers
- Prices for daily essentials will decrease
- Exemption of GST on health insurance premiums
Bhubaneswar, Sep 4 (NationPress) Chief Minister Mohan Charan Majhi stated on Thursday that Odisha stands to gain significantly from the Goods and Services Tax (GST) reforms announced at the 56th GST council meeting in New Delhi.
In a press briefing, CM Majhi mentioned that, as pledged by Prime Minister Narendra Modi during his 79th Independence Day address, the GST reforms will commence on September 22, coinciding with the start of the Navaratri festivals.
Describing the GST reforms introduced on Wednesday as a historic move, he emphasized that India is on the path to becoming a Viksit Bharat through these extensive economic changes, with Odisha playing a significant role.
“The GST on Kendu leaves has been lowered from 18 percent to 5 percent. This is indeed excellent news for us, as Odisha ranks among the top five or six Kendu leaf-producing states in India. This will enhance the earnings of Kendu leaf pluckers in Odisha and lead to increased sales of Kendu leaves. Traders involved in Kendu leaf commerce will provide greater incentives to pluckers, improving their livelihoods,” stated CM Majhi.
He acknowledged that stakeholders had long advocated for a reduction in GST on Kendu leaves, a demand that was finally met during the GST council meeting.
Additionally, the Chief Minister highlighted that Odisha’s revenue from the coal industry would see a significant rise following the rationalization of GST and the cessation of compensation cess on coal.
Focusing on the agricultural sector, Chief Minister Majhi noted that the reduction of GST on farm machinery and fertilizers would lower input costs, consequently aiding farmers in the state.
Majhi also stressed that the recent GST reforms would offer considerable relief to the middle- and lower-middle-class families across the state.
He indicated that everyday items, cement, two-wheelers, and more will become less expensive due to the GST reforms, providing relief to middle-income households. He also mentioned that the exemption of GST on health insurance premiums is expected to encourage more people to obtain insurance coverage.
Point of View
The recent GST reforms in Odisha signify a crucial step towards economic improvement. The decision to lower taxes on Kendu leaves and essential goods reflects a responsiveness to local needs, enhancing livelihoods and reducing costs. These changes are expected to resonate positively across the socio-economic spectrum, reinforcing the government's commitment to fostering growth and stability.
NationPress
04/09/2025
Frequently Asked Questions
What are the key benefits of the recent GST reforms?
The key benefits include reduced GST on Kendu leaves, lower costs for farm machinery and fertilizers, and overall cheaper daily essentials, which will enhance the livelihoods of Kendu leaf pluckers, farmers, and middle-class families.
When will the GST reforms go into effect?
The GST reforms will take effect on September 22, coinciding with the start of the Navaratri festivals.
How will these reforms impact Kendu leaf pluckers?
With the GST on Kendu leaves reduced from 18% to 5%, pluckers will see increased earnings and better incentives from traders, improving their overall livelihoods.
Will the GST reforms affect agricultural costs?
Yes, the reduction in GST on farm machinery and fertilizers will lower input costs for farmers, benefiting the agricultural sector significantly.
How will middle-class families benefit from these reforms?
Middle-class families will benefit from lower prices on daily-use items, cement, and two-wheelers, providing much-needed financial relief.
