The Biju Janata Dal (BJD) has criticized the central government for not granting complete exemption from Goods and Services Tax (GST) on kendu leaves and handloom products. This comes after the political party and various public organizations in Odisha have long demanded a full GST exemption. Addressing a press conference regarding the revised GST slabs for Odisha, BJD Senior Vice President Debi Prasad Mishra, along with former State Finance Minister and MLA Niranjan Pujari, stated that the party had been consistently seeking a complete GST exemption on kendu leaves since 2018.
Mishra noted that former Chief Minister Naveen Patnaik had also written to Union Finance Minister Nirmala Sitharaman, requesting a complete GST exemption on kendu leaves. Under the new GST slabs, the tax rate on kendu leaves has been reduced from 18 percent to 5 percent. However, despite this reduction, the harvesters of kendu leaves will not receive any significant or actual benefit.
MLA Niranjan Pujari emphasized the demand for complete GST exemption in the handloom sector, keeping the interests of weavers in mind. The former state finance minister said that both power looms and handlooms exist in the textile sector. Power looms are controlled by industrialists, while handlooms support the poor weavers who make cotton sarees, silk sarees, and similar items. To encourage and support these economically weaker weavers, exemption from GST was repeatedly demanded. However, a 5 percent GST is also being imposed on them.
BJD reiterated its call for complete GST exemption for both sectors. According to the state government, Odisha is the third-largest producer of kendu leaves after Madhya Pradesh and Chhattisgarh. The annual production of kendu leaves is approximately 3 lakh quintals, which is about 20 percent of the national annual production. Kendu leaves are found in 22 districts of Odisha, and most people dependent on the trade of kendu leaves are tribals.
Kendu leaves are thin and flexible. These leaves do not break after drying. They are mainly used for making bidis. In addition, they are used in traditional medicine. Kendu leaves are used in Ayurvedic practices, especially for the treatment of diseases like diabetes, fever, and diarrhea. These leaves are an important Non-Wood Forest Product (NWFP) that provides economic assistance to many tribal communities. They are produced in states like Odisha, Madhya Pradesh, and Chhattisgarh.
