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| Tea containers being loaded at Amingaon Telegraph picture |
Guwahati, Feb. 22: The Assam tea industry has requested Dispur to continue reduced taxation on tea exported from the Inland Container Depot (ICD) Amingaon for three more years so that exports to important markets continue to grow.
In the 2011-12 budget, the state government had enhanced deduction from agricultural income on tea exported through the depot to Rs 6 per kg of made tea for one year with effect from April 1, 2011, to March 31, 2012, under the Assam Agricultural Income Tax (Amendment) Act, 2011.
So far, 2,383 containers have been exported from the depot and another three to four more are being sent.
Altogether 2,285 containers were dispatched in 2010-11, compared to 2,954 in 2009-10 — the highest since the inception of the depot.
Statistics reveal that since 1986, when the depot became operational, 50,121kg of tea have been exported through the facility till 2010-11.
A source said foreign tea importers had also developed great faith in the Amingaon depot because of its efficiency and damage-free shipments.
The Indian Tea Association said the Rs 6 per kg reduction in tax needs to be continued for at least three more years, as the revenue impact of such a step would be marginal for the government, but would provide a significant boost to tea exports.
“There will be no direct loss of revenue to the government as the relief will be dependent on the agricultural income earned by the exporters,” an ITA official said today.
Pakistan and Egypt, totalling a market size of around 200 million kg, have recently started import of Assam tea.
Iran traditionally imports Assam orthodox tea.
Iraq, traditionally a very price sensitive market, is gradually shifting to private buying and Assam tea may also have new opportunities in this market.
“The relief by way of a tax reduction would enable exporters to quote more competitively while targeting these thrust markets,” the official said. The government would be aware that volatility in price realisation and high cost of production and transport because of structural factors has made Assam tea costly in international markets, he added.
“While the ICD infrastructure has created considerable employment opportunities and enabled Assam tea to reach the international buyers faster, producer-exporters would face tremendous difficulties to use ICD facilities in the absence of the proper incentives,” the official added.
The Container Corporation of India Ltd, which looks after the rail-linked depot, has been making a lot of investment to improve infrastructure and services there so that more tea could be sent through the facility.
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