Biju Janata Dal reiterates demand for waiver of 18% GST on Kendu leaf

Biju Janata Dal criticises BJP government for not waiving GST on Kendu Leaf, impacting livelihood of forest communities.

The Biju Janata Dal on August 5 strongly criticised the Bharatiya Janata Party-led National Democratic Alliance government for overlooking the demand to waive the Goods and Services Tax (GST) on Kendu Leaf.

“Kendu leaf, a minor forest product, is the financial backbone for 15 lakh Kendu leaf pluckers, binders, and seasonal workers and the 18% GST on the leaf is affecting trade, indirectly harming the poorest communities in the forest fringe areas of the State,” Sanchit Mohanty, former advisor to Kendu Leaf Welfare Board, said. The BJD has been opposing the imposition of 18% GST on Kendu Leaf from the beginning.

“Majority of Kendu leaf pluckers and binders are women. In the recent budget when Centre brought down GST rate in all other products, the tax rate on Kendu leaf remained unchanged. In 2019, the BJP had promised to completely waive off the GST on Kendu Leaf,” Mr. Mohanty said. “The BJP has failed to fulfil its promise though it is in power both at Centre and State,” he said.

“It needs to be mentioned that former Chief Minister Naveen Patnaik had written to Union Finance Minister Nirmal Sitharaman demanding withdrawal of imposition of GST on Kendu leaves for greater interest of the State,” he added

The BJD said then State government under Mr. Patnaik had returned 9% of the State’s share to institution dealing with Kendu leaf when Centre paid no attention to the demand.

“When only 3% GST is imposed on jewelleries including gold and other precious stones and 5% on air travel, the 18% GST on Kendu Leaf does not sound logical. The BJP-led State government must put forth demand for waiver of GST on Kendu leaf for overall benefit of tribals,” Priyabrata Majhi, BJD spokesperson, said.