Plantation Industry Demands Tariff Protection

The plantation industry has sought abolition of excise duty on tea, bringing of all value-added natural rubber products under the ambit of income tax and exemption of plantation companies from the purview of tax on distributed profits.

The industry has also sought adequate tariff protection for the sector by increasing the basic import duty to bound rates along with reduction in the customs duty on copper scrap to the minimum.

In its pre-budget memorandum, the United Planters Association of Southern India (UPASI), the umbrella organisation of the plantation sector, said: "The excise duty of Rs 2 per kg on tea should be abolished for south India as the commodity fetches a very low price. While the production cost is Rs 65 per kg, the auction price is around Rs 53 per kg.