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Thursday, March 4, 1999

TAI flays Govt for excise on bulk tea 

Our Bureau  
Calcutta, March 3: The Tea Association of India (TAI) is disappointed by the Union Government's decision to impose an excise duty of Rs 2 per kg on tea with effect from February 28, 1999. According to a press release issued by TAI on Wednesday, the excise will add to the overall rising costs which were not reflected in the declining tea prices this year.TAI president Arvind Newar said while the tea plantation industry has welcomed the eight per cent excise exemption, it is disappointed by the additional levy on bulk tea.

Newar said in a year when prices of essential commodities like foodgrains increased by more than 25 per cent, tea prices did not affect the common man at all. "In fact, the prevailing average tea price is Rs 71.89 per kg, which when put in accordance to wholesale price index should have been Rs 84.56 per kg. This effectively means a shortfall of Rs 12.67 for each kg of tea," the TAI chief said.Newar warned that the social cost of decelerating development in the tea industry would be muchhigher than the excise revenue collection.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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