Call To Hike Tea Customs To 35%

The Indian tea industry has asked for enhancement of the customs duty on tea imports to 35 per cent and withdrawal of the central excise duty on bulk tea.

Representatives of various industry bodies have made a case for a hike in the customs duty on tea to 35 per cent from the current level of 15 per cent. This is far below the bound rate on tea which is 137 per cent, they added.

"Customs duty on tea in India is much lower than in other tea producing countries. With progressive dismantling of QRs, adequate tariff protection is required to sustain growth and viability of the Indian tea industry," said RS Jhawar, Chairman of the Indian Tea Association while briefing the media.

 

Jhawar said increase in import duty would prove to be a psychological booster to the Indian industry, which has been hit by decline in prodction and rising costs.

Jhawar said the price of Indian tea had fallen by about 18 per cent since last year, directly affecting the cost of production and placing the tea industry under severe strain.

Industry officials also said that the central excise duty at Rs 2 per kg has become an unsustainable burden on the tea industry.