Odisha’s Opposition BJD on Thursday demanded complete GST exemption on kendu leaves and handloom products and asked the Centre to compensate the estimated revenue loss of ₹1,000 crore per month towards the change in the tax slabs.
Addressing a media conference at Shankha Bhawan on Thursday, BJD’s senior vice-presidents Debi Prasad Mishra and Niranjan Pujari explained the implications of the new GST slabs in Odisha.
“Last year, the total revenue collected from GST was around ₹61,000 crore. In view of the new slabs, the collection is expected to reduce by around ₹12,000 crore,” claimed the BJD.
Mishra said that they had been demanding complete GST exemption on kendu leaves and handloom products since 2018.
Under the revised slab, the tax on kendu leaves has been reduced from 18 per cent to 5 per cent, but BJD argues that this reduction does not benefit the leaf collectors.
Pujari said: “While power looms are dominated by industrialists, handloom products are crafted by poor weavers. These artisans belong to the economically weaker sections, and to encourage and support them, GST exemption has been a longstanding demand.”
Currently, 5 per cent GST is being levied on handloom products.