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Tea industry not happy with budget

A Tea Association of India (TAI) representative said: “Though the withdrawal of 2 per cent TDS on withdrawal cash of more than Rs 1.00 crore is a major demand of the tea industry, there is no relief in the budget.”

Tea industry not happy with budget

(Representational Image: iStock)

Stakeholders associated with the tea industry in North Bengal are upset as there is no relief for the industry in the Union budget despite several appeals. A Merchants’ Chamber of Commerce and Industry (MCCI) representative, however, said: “The budget strikes a reasonable balance between addressing the objective of inclusivity and laying the path for a $5-trillion economy.”

A Tea Association of India (TAI) representative said: “Though the withdrawal of 2 per cent TDS on withdrawal cash of more than Rs 1.00 crore is a major demand of the tea industry, there is no relief in the budget.”

On the other hand, Confederation of Indian Industry (CII) president Vikram Kirloskar said: “The Union finance minister had an extremely tight rope to walk, balancing a severely constrained fiscal space with the need for higher government expenditure for boosting investments and consumption. She has done that well in addressing the key priorities while being within the bounds of the Fiscal Responsibility and Budget Management Act.”

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On the other hand, the secretary general, TAI, PK Bhattacharjee said: “The current budget has been thematically categorized into three parts. Aspirational india, economic development and caring society. The impacts on tea industry are to be gauged through the benefit that can accrue from these three categories. For example, the potential of expecting the Pradhan Mantir Kishan Urga Suraksha Evam Utthaan Mahaabhiyan (PM KUSUM) can be expected to be extended to the tea industry in the form of setting up ‘Standalone Solar pumps’. With the agri-credit limit setting Rs 15 lakh crore the tea industry being a predominant agricultural activity the industry would look forward to benefit out of this allocation.”

“Further the exporters of tea industry should be benefited through the proposed rebate on digital refund of duties paid, including fuel and electricity which is at present not refundable under GST. The introduction of NIRVIK (Niryat Rin Vikas Yojana) to provide enhanced insurance cover and reduced premium for small tax payers is welcome,” Mr Bhattacharjee said.

“With four or five districts where tea is the predominant agriculture activity in West Bengal and nearly a dozen in Assam, the prospect of such districts to be developed as export hubs could provide spurt in economic activities,” the secretary general said, adding, “The withdrawal of Dividend Distribution Tax from companies is a positive step.”

According to Mr Bhattacharjee, the increased emphasis in the national flagship schemes like Pradhan Mantri Awas Yojona (PMAY) Pradhan Mantri Gram Sadak Yojana (PMGSY), Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) which is also mentioned at Code no. 24(4) of Occupational Safety Health and Working Conditions Code 2019 can benefit the tea industry along with the schemes that lay more emphasis on child welfare and climate change. The change in incentive schemes for chemical fertilizers, in the budget 2020- 2021, may impact on tea.

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