Odisha CM Patnaik urges FM Sitharaman to withdraw 18% GST on Kendu leaves

Odisha Chief Minister Naveen Patnaik has urged Union Finance Minister Nirmala Sitharaman to completely waive the 18 per cent GST tax on Kendu leaves as it would adversely affect the livelihood of the poorest of the poor section of the society.

Patnaik in a letter written to Sitharaman on Monday said that 18 per cent GST on Kendu leaves should be waived in the larger interest of poor and tribal people associated with Kendu leaves trade in the state.

"Imposition of GST (18%) on Kendu leaves is adversely affecting the Kendu leaves trade. This in turn affects the livelihoods of Kendu leaves pluckers, binders and seasonal workers and implementation of social security and welfare schemes for them," Patnaik wrote in the letter.

Stating that the Kendu (Tendu) leaf, which is a minor forest produce, is the financial backbone of 8 lakh kendu leaf pluckers, binders and seasonal workers of Odisha, Patnaik said the people engaged in the trade are mostly tribal and women belonging to the poorest of the poor of the society.

He said the tribal people collect the leaves as part of their rights defined under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products, he said.

Patnaik, who had also made a similar request to Sitharaman earlier through a letter on November 25, 2022, said: "Once again it is requested to withdraw the imposition of GST on Kendu leaves for the greater interest of the state of Odisha.