Forests
GST breather for Sal plates, Sabai ropes
Tax on these two minor forest products, a source of livelihood for millions of tribals, has been reduced from 18 per cent to 5 per cent
By Ishan Kukreti
Published: Monday 25 September 2017
Taxation on minor forest products Sal leaf plates and Sabai grass ropes has been reduced under the new Goods and Services Tax (GST) regime from the initial 18 per cent to 5 per cent.
On September 1, the Chief Minister of Odisha Naveen Patnaik had written to the Union finance minister Arun Jaitley urging him to reduce the tax rate on Minor Forest Produce (MFPs).
Both Sal leaf and sabai grass are MFPs that tribal communities depend on, for their sustenance. In Odisha alone, 1.5 million people earn their livelihood by collecting Sal leaves.
While the GST has been reduced, under the pre-GST rules Sal leaf plates were exempted from Value Added Tax or exercise tax in the state. Royalty of Rs 72 per quintal of leaves was charged by the state’s forest department.
Organisations working for tribal rights, however, claim any taxation or cess on MFPs is unjustified. “GST on MFPs is violating the spirit of FRA (Forest Rights Act) and creating unnecessary roadblocks for the forest dwelling communities to translate rights into livelihood,” Chitta Ranjan Pani of Vasundhara, a non-profit working on tribal rights in Odisha, said.
Moreover, the GST rates on other MFPs remain the same.
Related Stories
- 1.5 million tribals in Odisha hit by 18% GST on Sal leaf
- Odisha tribals to sell kendu leaves and exercise their forest rights
- Why has tendu leaf revenue not reached forest dwellers even after 50 years?
- GST of 18% on tendu leaves: how it will impact tribals
- GST regime could reduce local self-governing bodies to mendicancy
India Environment Portal Resources :
- Question raised in Rajya Sabha on Relaxation of regulatory regimes for bamboos, 27/03/2017
- Promise and performance of the Forest Rights Act, 2006: Odisha report
- Judgement of the High Court of Orissa on the confiscation of a truck carrying Sal Leaves plates by forest officials in Boudh, Odisha under the Orissa Forest Act, 18/03/2015
- Judgement of the Kolkata High Court regarding payment of market fee in relation to the transaction of Tobacco and Kendu Leaves in the notified market area for manufacturing Biri, 06/05/2014
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