Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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Odisha Chief Minister Naveen Patnaik has urged Union Finance Minister Arun Jaitley to reduce the GST on tendu leaves from 18% to 5% in the interest of a large section of people dependent on it for their livelihood. In a letter to Mr. Jaitley on Thursday, Mr. Patnaik requested that the matter be taken up at the next meeting of the GST Council. Stating that tendu leaf is the financial lifeline of the tribal people of Odisha, Mr. Patnaik said they collect the leaves as part of their right defined under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. “They have the right to procure and sell these products,” he added. The CM pointed out that prior to the implementation of the GST, there was 5% VAT on tendu leaf in Odisha. “This hike from 5% to 18% is very high,” he said. Thousands of quintals of tendu leaves are still lying at different godowns due to the hike in the GST rate, Mr. Patnaik said. “This has led to drop in selling price of tendu leaves sold by the Odisha Forest Development Corporation Ltd through tender, which has adversely impacted the implementation of social security and welfare schemes for ,” he said.
