The Hindu Business Line : Tea prices may rise on VAT, TMCO

THE Federation of All-India Tea Traders Association (FAITTA) feels that tea prices will increase by Rs 10-15 per kg due to Value-Added Tax (VAT) and Tea Marketing Control Order (TMCO) 2003.

In a press release, the association Chairman, Mr P.O. Desai, said that more than 200 regional tea brands would be affected under the new laws. He urged the Chairman of Tea Board, Mr Naba Kumar Das, to take up the case with respective authorities.

Regarding packet tea, he said, it was earlier charged a sales tax of four per cent. Subsequently, the rate was raised to eight per cent. Under the ensuing VAT regime it will be 12.5 per cent. Over and above this, the tea packeteers will have to pay a five per cent tax for procuring tea from auctions under TMCO 2003.

Mr Desai felt that these hikes would put Indian tea industry at a disadvantage in the global market. The Union Government should give soft loans to national and regional players for purchasing packaging machinery and other equipment, he said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Punjab enters contract farming for basmati rice

Warehousing Corpn plans

S. Korea may buy potatoes from Bengal

Cool options

Rubber prices touch 7-year high

Rubber stocks dip on higher offtake — 30,000-tonne imports likely by tyre makers before August

Tea prices may rise on VAT, TMCO

Aid sought for developing non-mulberry silks

Edible oil imports surge 20 pc

Coconut Summit next month

Pepper prices steady on buying support

`No duty-free import of spices'

Food and Fertiliser subsidies — Major drag on farm sector growth