GROWING ANGST ON INDIA'S PLANTATIONS

Article Abstract:

The government of India has declared the plantations of rubber, tea, coffee and cardamom as industry and gives concessions on its exports. The four crops are agriculture oriented and the state government has a variety of policies on land, forests, agriculture, labour and taxation for them. It, however, levies agriculture income tax (AIT). The United Planters' Association of Southern India (Upasi) feels that a holistic plantation policy should be drafted. There are anomalies not only between one commodity and the other, but also in different sections dealing with the same commodity. The association wants the government of India to consider and implement the Chelliah Committee and Wanchoo Commission reports. (rk) ------------------------------------------------------------ Production of Plantation Commodities (in tonnes) ------------------------------------------------------------ Year Tea Coffee Rubber Cardamom ------------------------------------------------------------ 1995-96 749,888 200,000 506,910 7,500 ------------------------------------------------------------ 1996-97 779,153 190,000 549,425 6,000 ------------------------------------------------------------ 1997-98 809,772 210,000 590,000 7,650 ------------------------------------------------------------

Comment:

India: Government declares plantations of rubber, tea, coffee & cardamom as industry & gives concessions on exports

Coffee Beans, Natural Rubber, Forest Nurseries and Gathering of Forest Products, Coffee (Plant)

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TATA TEA STICKS TO NORMS, SIPS THE CUP OF BLISS

Article Abstract:

Tata Tea has decided to follow the CBDT norms at a time when most of the tea firms are opposed to the Finance Ministry's proposal to minimise benefits from export profits. The Finance Ministry issued a circular on the CBDT norms in 1992 which states that export benefits should apply only to the 40 percent income that attracts corporate income tax. The tea industry is subjected to 60 percent agricultural tax by states and 40 percent of the remaining income attracts tax. Initially, the tea industry's 80HHC export benefit had been based on its total income. Tata Tea took advantage of the CBDT norms by paying higher income tax while other firms have approached the courts contesting the norms. The company's cumulative income tax paid in the period 1991-92 to 1997-98 was Rs90 crore (after considering 80HHC benefits). (gs)(m)

Marketing procedures, Exports, Field crops, except cash grains, not elsewhere classified

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PLANTATION SECTOR: OVER-REGULATED, OVER-ADMINISTERED

Article Abstract:

The plantation industry, especially tea, is governed by the Tea Act Control Order, the Tea Waste Order, the Tea Warehousing and the Licence Order and several other orders under the plantation and food products laws. Plantations are controlled both the State and the federal government. The taxation should be uniform to make tea affordable. Land, labour and taxation come under the State government. The various old laws and orders need to be reviewed and obsolete laws scrapped. A high-powered commission is to study the plantation sector and recommend reforms needed to streamline the industry. (rk)

Comment:

India: Taxation of tea in the country should be uniform to make tea affordable, & that laws that govern tea prodn be reviewed

Taxes

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