The Hindu Business Line : Tea buyers' body seeks tax sops at Kochi auctions

THE Tea Buyers Association has called upon the State Government to grant sales tax exemption for the tea purchased at Kochi auctions for the benefit of export trade.

Addressing the 32nd annual general meeting, Mr Anil Kumar N. Prabhu, President of the Association, pointed out that the tea export trade is put to difficulties due to blocking of funds as the teas purchased attract VAT at the rate of four per cent since its introduction in April.

Prior to the introduction of VAT, he said sales tax exemption was granted if the teas purchased at the Kochi auctions were exported within nine months from the date of the auction. However, there is no such provision in the Kerala Value Added Tax Act, 2005.

Mr Prabhu pointed out that West Bengal, a major producer of Indian tea, had already taken steps in this regard to help the export trade. The Association, he said, had made a representation to the State Government requesting for similar steps to provide relief to the exporters operating in Kochi auctions.

Since the export performance has a bearing on the prices, Mr Prabhu said that vigorous efforts should be made for stepping up tea exports. Such a comprehensive programme will bring in cheer to the tea industry.

Both the Central and State Governments have been implementing several measures for the revival of the tea industry. It would be desirable if the Tea Board could also launch a massive propaganda to promote internal market of tea, which is a health drink too, he added.

Referring to tea statistics for the period January to July, Mr Prabhu said that the total production in the country had registered a growth of 11.5 per cent against the corresponding period of 2004.

The North Indian production went up to 214.1 million kg from 191.6 million kg and of South India to 98.6 million kg from 88.9 million kg. The quantity of North Indian and South Indian auction sales also increased during this period to 153.7 million kg from 138.1 million kg, and to 78 million kg from 75.7 million kg respectively.

He lauded the steps being taken by the Tea Board to curb the production of substandard teas and for quality up-gradation. The State Government had also taken similar steps to check the menace of `adulterated tea'.

Since the presence of adulterated tea is not only a health hazard but a real threat to the genuine trade also, he pointed out that the Governmental action needs to be intensified.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Deceptively simple

Rubber continues to post gains

Nizam Sugars dividend to Govt

Tea buyers' body seeks tax sops at Kochi auctions

Water storage level up 29 pc

Jute exports on the upswing

Soyameal exports: Trade on wait & watch mode
1.5 lakh tonnes shipments contracted; China buys 50,000 t

Amla stakeholders' meet in Madurai