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Tamil Nadu cuts sales tax on tea to 4% for six months 

PRESS TRUST OF INDIA  
Chennai: In a bid to mitigate the sufferings of the tea growers in Nilgiris district the Tamil Nadu government on Saturday brought down the sales tax on green tea to 4 per cent from the present 8 per cent with immediate effect for a period of six months.

This was announced by Chief Minister M Karunanidhi, in the state assembly while replying to points raised by members on the plight of tea planters in the Nilgiris. The Government action would help growers to tide over the crisis, he said.

He said he had written to the Prime Minister and Union commerce minister to hike the import duty on tea so that the growers in the country did not suffer from price fall.

Karunanidhi said in Nilgiris district alone tea was being grown in 1.25 lakh acres and 25,000 small farmers were engaged in tea plantation.

The problem arose because Russia had stopped importing 100 million Kgs of Nilgiris tea since Kenya started supplying the same quality tea at a lesser cost.

He said he had also requested defence minister George Fernandes to ask his ministry to procure 3,000 tonnes of tea from Nilgiris farmers for the requirement of defence departments.

Karunanidhi said way back in January itself he had written to Union finance minister and industry minister to waive the excise duty levied on tea.

Earlier, the members including the government whip C Mubarak, KS Azhigiri (TMC) and K Subbarayan (CPI) wanted a ban on import of tea.

The recently announced exim policy had led to the current situation, they said.

Subbarayan, J Hemachandran (CPI-M), PR Sundaram (AIADMK) said the plight of the Nilgiris growers was a direct result of the economic policies pursued by successive central governments right from 1991.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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