BHUBANESWAR: Chief Minister Naveen Patnaik on Thursday demanded that GST on kendu leaves should be brought down from 18 per cent to five per cent as a large number of people from the State are dependent on it for their livelihood.The issue was raised by Naveen in a letter to Union Finance Minister Arun Jaitley. “In the interest of a large cross section of the people dependent upon kendu leaves for their livelihood, it is requested to place the matter in the next meeting of GST Council and consider to reduce GST on kendu leaves to five per cent,” he said.
The Chief Minister said in Odisha, there was five per cent VAT on kendu leaves prior to implementation of GST. Due to of 18 per cent GST, which is very high, thousands of quintals of kendu leaves are still lying at different godowns, he said.
“This has led to drop in selling price of the leaves sold by Odisha Forest Development Corporation Limited through tender,” he said and added it has also impacted implementation of social security and welfare schemes for 8.5 lakh kendu leaf pluckers, seasonal and binding workers engaged in the trade.
Kendu leaf, a minor forest produce, is financial lifeline of tribals of Odisha. They collect the leaves as part of their right defined under Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products, Naveen added.