NEW DELHI, July 4: The Consultative Committee of Plantation Associations (CCPA) on Saturday met finance minister Yashwant Sinha and drew his attention to its representation submitted on June 22 for total withdrawal of central excise duty of eight per cent on branded packaged tea.CCPA chairman V K Goenka, who accompanied the delegates from other tea sectors also, told the finance minister that the central excise duty of eight per cent on packaged tea is likely to result in a price rise of Rs 10 to Rs 12 per kg on the lower priced branded teas.
"This can not be consistent with the government's avowed policy of making available this commodity at consumer-friendly prices," Goenka added.He said that whenever tea prices have hardened duty to international supply-demand pressures, the tea industry has been called upon to launch economy priced packets which have gained popularity under the brand name Nivedan.
The CCPA's plea rests on two vital considerations which included high penetration of packaged teaamong rural population and low income strata and essential commodity status of tea.
The CCPA again urged the finance minister to totally withdraw excise duty on packaged tea and enable the consumer to buy quality tea at affordable prices.The delegation after meeting finance minister told the agency that they were satisfied with the positive response of the minister as he said "it is under the active consideration of my ministry."
The Consultative Committee of Plantation Associations, the apex body of the tea industry in India, includes the Indian Tea Association, United Planters' Association of Southern India and the Tea Packeters' Associations of India.Earlier, a delegation of the Federation of All India Tea Packeteers' Associations (FAITPA), led by Shiv Sena MP Satish Pradhan also called on Sinha and submitted a memorandum in this connection.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.