BJD MPs urges Sitharaman to carry GST on kendu leaf

Bhubaneswar: A delegation of Biju Janata Dal (BJD) MPs on Wednesday urged Finance Minister Nirmala Sitharaman to withdraw 18 per cent GST imposed on kendu leaf, which is used for wrapping bidis.

The BJD delegation comprising members from each the Houses of the Parliament met Sitharaman in Delhi and submitted a memorandum on this regard.

Kendu (tendu) leaf, a minor forest produce (MFP), is the monetary spine of about 8 lakh kendu leaf pluckers, binders and seasonal staff in Odisha, principally belonging to the tribal group.

They have the fitting to acquire and promote these merchandise as per Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, the MPs mentioned.

Stating that imposition of 18 per cent GST on kendu leaves is adversely affecting commerce and livelihoods of individuals, the MPs urged the Finance Minister to carry the GST on kendu leaves for the higher curiosity of the state of Odisha.

Earlier, Odisha Chief Minister Naveen Patnaik had written to Sitharaman in November this yr for withdrawal of GST on kendu leaves.

In the forty eighth GST Council assembly held on December 17, Odisha’s Finance Minister Niranjan Pujari had additionally raised the demand for exemption of GST on kendu leaf.

Pujari had mentioned within the GST Council assembly that the 18 per cent tax on the forest produce is towards the Forest Rights Act, 2006, and PESA Act, 1996, because it impacts the livelihood of kendu leaf pluckers, over 90 per cent of whom are tribals, moreover the binders and seasonal staff.

Odisha is the third largest producer of kendu leaf after Madhya Pradesh and Chhattisgarh. The annual manufacturing of the bidi leaf in Odisha is round 4.5 to five lakh quintal, which is about 20 per cent of the nation’s annual manufacturing.

(IANS)