The Hindu Business Line : TN small tea growers seek S-T reduction

"We have represented to her on the grounds of the recent lowering of the tax in Assam. Already, Assam had a lower tax of 2 per cent, but considering that it would lose out to West Bengal which imposes just 1 per cent, the Government there has reduced the sales tax on tea to a mere 1 per cent," Mr M. Bhojarajan, President of the Nilgiris Small Tea Growers' Association, told Business Line.

According to the Tamil Nadu General Sales Tax Act, tea attracts as much as 8 per cent tax. "Consequently, there is a visible reluctance amidst the buyers from upcountry markets to do business in Tamil Nadu. This is seriously telling on the build up of demand at the auctions here," he pointed out.

Upcountry buyers, appreciative of the quality of the teas from the Nilgiris, are paying a fair price for the quality produce. But, the high incidence of taxes vis-à-vis other States is upsetting the prospects for Nilgiri teas in the overall market, he said.

Besides, a uniform taxation would help bring in transparency and clean dealings, which would augment the revenue for the Government. Increased turnover can help increased revenue. With the unprecedented rains in May, the factories are flush with a huge crop. "At this point of time, any help to reduce the burden for the factory owners and the growers is important," he said.

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