BJD Calls for Full GST Exemption on Kendu Leaves and Handloom

Quick Summary

• The Biju Janata Dal (BJD) criticized the Union government for not granting complete GST exemption on kendu leaves and handloom products.
• Odisha government faces a potential revenue loss of ₹1,000 crore per month under new GST slabs introduced by the Center.
• as 2018, BJD has consistently demanded full GST exemption on kendu leaves; their tax rate was recently reduced from 18% to 5%. However, leaders argue this reduction offers little substantive benefit to tribal pluckers reliant on the trade.
• Similar demands were made for GST exemption in the handloom sector to support economically vulnerable weavers producing cotton and silk sarees, but no full exemption was granted.
• Odisha accounts for approximately 20% of India’s annual kendu leaf production (3 lakh quintals), with tribal communities heavily involved in its trade across 22 districts.

Indian Opinion Analysis
The debate over GST exemptions highlights critical economic concerns tied to resource-specific industries involving marginalized segments-tribal communities in kendu leaf collection and rural artisans in handloom production. While the reduction from an 18% tax rate to 5% is a practical step toward lessening financial burdens, stakeholders argue that this does not address deeper inequities or provide transformative benefits for those at the bottom of supply chains. odisha’s substantial contribution to national kendu leaf production underscores its vested interest in policy decisions impacting revenue generation.

On a broader level, disputes such as these shed light on persistent challenges facing states seeking more control over taxation frameworks under cooperative federalism dynamics within India’s GST regime-a tension that could have wider implications beyond specific sectors like agriculture or textiles.

Read more: The Hindu