BJD MPs Demand Withdrawal of GST on Kendu Leaf; Submit Memorandum to Union Fin Min

New Delhi: The Biju Janata Dal (BJD) MPs on Wednesday submitted a memorandum to Union Finance Minister Nirmala Sitharaman seeking withdrawal of GST on Kendu leaf as demanded by Odisha Chief Minister Naveen Patnaik repeatedly.

In the memorandum, the BJD said that Kendu (Tendu) leaf, a Minor Forest Produce (MFP) Is the financial backbone of about 8 lakhs Kendu (Tendu) leaf pluckers, binders and seasonal workers of Odisha, mostly belonging to the tribal community and poorest of the poor of the society.

The tribal people collect the leaves as part of their right defined under Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products. Imposition of 18% GST on Kendu leaves is adversely affecting the Kendu leaves trade. This In turn affects the livelihoods of Kendu leaves pluckers, binders and seasonal workers and Implementation of social security and welfare measures for them.

In the interest of the livelihoods of the Kendu leaves dependent community, it is urged upon to withdraw the Imposition of GST on Kendu leaves for the greater Interest of Odisha, the BJD MPs said.

Chief Minister Naveen Patnaik had written to the Union Finance Minister on 25th November, 2022 requesting for the withdrawal of imposition of GST on Kendu leaves.

In the 48th GST Council meeting held on 17th December 2022 Odisha Finance Minister Niranjan Pujari had also raised the demand for exemption of GST on Kendu leaf. He had stated the 18% tax on the Kendu leaf is against the Forest Rights Act, 2006, and PESA Act, 1996 as it affects the livelihood of Kendu leaf pluckers, over 90% of whom are tribals, besides the binders and seasonal workers. The BJD has been relentlessly seeking the withdrawal of GST from Kendu leaf, the memorandum reads.