Assam tea industry demands reduction in green leaf cess

The Assam tea industry has demanded the state government a "substantial" reduction in green leaf cess rate so as to ensure that the tea industry remains economically competitive.

The green leaf cess was increased with effect from January 1, 2010 from 32 paise and 29 paise to 40 paise and 35 paise per kg of green leaf respectively for Brahmaputra Valley and Barak Valley. There was also an increase in the rate of cess on purchase of green leaf, from 20 paise to 25 paise per kg of green leaf.

"The green leaf cess was pegged at an unjustifiably high rate specially when the neighbouring tea growing state of West Bengal continues with its exemption from payment of green leaf cess to provide some relief to the tea industry even when it was only 12 paise per kg," said Dipanjol Deka, secretary of Tea Association of India (TAI).

In a pre-budget memorandum, submitted by TAI, the association has requested for a "substantial" reduction in rate of green leaf cess. "A reasonable rate should be decided to ensure that the Assam tea industry remains economically competitive in the overall sphere of Indian tea industry," said Deka.

The tea industry has also asked the state government to exempt tea garden hospitals from the coverage of the Bio-Medical Rule 2000 and from payment of fees for authorisation of tea garden hospitals. The organised sector of tea industry provides the basic healthcare facility to the workers, employees and their dependent residents in the gardens as per the provisions of The Plantations Labour Act 1951. The tea industry has argued that the medical services rendered by tea garden hospitals were purely welfare activities rendered to the society without any commercial motive.

"The garden hospitals normally do not carry out surgical operations, neither conduct diagnostic tests of any kind. They, therefore, do not generate human anatomical waste or microbiological and biotechnological wastes etc. It was unjustifiable then to include the tea garden hospitals under the Bio-Medical Rule 2000 which warrant payment of requisite fees at a very high rate," said Deka.

He further added that the disposals from the garden hospitals, not hazardous in nature, are not even collected by any government or municipal authority. The tea industry association has also asked for reintroduction of the amnesty scheme through waiver of interest and penalty in order to enable the tea companies in the Assam to liquidate in easy installments their accumulated old dues on account of state taxes and levies.

Deka said: "Owing to accumulated losses and liabilities arising out of the continued recession in the tea Industry spanning nearly a decade, many a tea companies in the Assam could not dispose of their past liabilities on account of land revenue, cess and such other state taxes. In the budget proposal 2014-15 the state government had already proposed a Liquidation Act for clearing up long outstanding dues but is still awaited."