Tea Federation demands 4 pc VAT on Tea in Mah at par with other sts

Mumbai, Mar 13 (UNI) Federation of Tea Traders Association of Maharashtra (FTTAM) is demanding 4 per cent value added tax (VAT) on tea, for maintaining uniformity in tea prices with all states in India.

In a statement, FTTAM President Mr Harendra Shah said,''The Maharashtra is having 4 per cent VAT on Tea up to March 31, 2007.The Tea Traders of Maharashtra were very much disappointed on the issuance of the circular by the Commissioner of Sales Tax, Maharashtra that VAT on tea will be increased to 12.5 per cent from April 1 2007.'' In fact Maharashtra Finance Minister Mr Jayant Patil had assured that 4 per cent VAT tea would continue in order to maitain parity with the other 23 Indian states. Increase in VAT to 12.5 per cent will result increase in tea prices by Rs 10 to Rs 20 per kg and thereby making poor men's drink dearer and increasing inflation further.

''If the state government would not be change from 12.5 per cent to four per cent VAT on tea, FTTAM will joint protest bandh called by Federation of Association of Maharashtra (FAM) on March 15, 2007.

''In addition, FTTAM plans to conduct a mass survey on public opinion as to whether tea can be put in the luxury basket of 12.5 per cent VAT by Maharashtra government,through cheapest drink next to water, he added.

UNI