Baripada: Imposition of the goods and services tax (GST) on sal leaf and sawai grass trading has irked the people of Mayurbhanj where this trade flourishes.

The affected people are preparing to launch an agitation on the issue.

The central government brought these articles under the preview of GST initially levying a tax of 18 per cent. It was later reduced it to 5 per cent after state government wrote to the Centre asking these products to be exempted from taxation. In Mayurbhanj, the rural economy revolves mainly around sal leaf and swai grass but the trade has been badly hit by the tax.

Social activist Bibudata Das said that a major chunk of the populace, especially in the rural patches of the tribal dominated district, depend either on sal leaf and sawai grass. "Most importantly, the rural women find employment and earn from this trade. They pluck and collect sal leaves from the forest. Similarly, they cut and process sawai grass for making ropes. Their economy revolves around this trade," said Das.

"These products have a very good market and they are also being exported after value addition. Moreover, these products are eco-friendly. But ever since being brought under ambit of the GST, the market has been badly hit and the livelihood of people has been adversely affected," he said.

Sources in Mayurbhanj said the sal leaf trading hubs are Baripada Sadar, Panchapidhi and Kaptipada while sawai trading pockets are Dantiamuhan and Baramile.

Business worth hundreds of crores of rupees takes place in the process of plucking, collecting, preparing, value adding, transporting and exporting these materials.

Though the GST has been reduced to 5 per cent following state government's intervention, the stakeholders have demanded its complete withdrawal and also that of royalty collection on these by the state government.