GUWAHATI, Feb 11 � The tea industry has sought reduction of land revenue rates and cess on green leaf so that the gardens in Assam get a level playing field to compete with the tea gardens of the other parts of the country.
In a pre-budget memorandum to Chief Minister Tarun Gogoi, the Tea Association of India (TAI) said that the sharp hike in the land revenue rates with retrospective effect from 2003 would have serious impact on most of the gardens and the Government should reconsider the decision.
The secretary of the TAI, Guwahati, D Deka said that the Assam Government increased the land revenue rates for the gardens of the Brahmaputra Valley from Rs 12 to Rs 22 per bigha and for those in the Barak Valley from Rs nine to Rs 16 per bigha in 2008 with retrospective effect from 2003. He said that the hike with the retrospective effect would put severe financial burden on the gardens and most gardens would find it difficult to pay the amount. He said that the land revenue rates in Assam are highest among all the tea producing states of the country and the State Government should consider the decision to increase the rates with retrospective effect to provide a level playing field to the tea gardens of Assam.
The TAI, in the memorandum expressed concern over the decision of the State Government to increase the green leaf cess and called upon the Government to reconsider the decision. Deka pointed out that the Assam Government increased the cess on green leaf from 32 paise per kilogram to 40 paise for the gardens of the Brahmaputra Valley and from 29 paise per kilogram to 35 paise for the gardens of the Barak Valley with effect from January 1 this year. He said that the Government decided to increase it at a time when the associations representing the tea industry were demanding moratorium on payment of cess on green leaf. He said that at present, Assam is the only tea producing state in the country which has imposed cess on green leaf. West Bengal used to impose a cess of 12 paise per kilogram on green leaf, but considering the slump in the tea industry, the Government of that state provided a moratorium on the payment of the same to give some relief to the industry.
The TAI has expressed concern on sudden hike on the fees payable to the Pollution Control Board and demanded that the decision should be reconsidered.
Another major concern expressed by the TAI is on entry tax and the association has demanded that the Government should review imposition of the same. Deka said that tea industry is forced to import different materials including fertilizer, all kinds of machinery and even jute bags and imposition of entry tax put additional burden on the gardens. He said that the Government should reconsider the same. The TAI has also been demanding transport subsidy at least for the gardens of the Barak Valley.