GUWAHATI: While welcoming the Union Budget, the Tea Association of India (TAI) expressed doubt that the government decision for levy of additional differential excise duty of Rs 2 per litre from October 1, 2022, for unblended fuel would give rise to the cost of production for the tea industry.
“Blending of fuel is a priority of this government. To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs 2 per litre from October 1, 2022,” Union finance minister Nirmala Sitharaman said in her budget speech.
India has an ambitious plan of 20% blending by 2025.
“The emphasis laid by the Union government on the blending of fuel leaves the door open for levy of additional differential excise duty of Rs 2 per litre for unblended fuel would give rise to the cost of production for tea industry,” Tea Association of India (TAI) secretary-general PK Bhattacharjee said in a statement here on Tuesday.
“The clarification provided with relation to health and education cess to be treated as business expenditure and rationalizing TDS provisions are important steps in at providing clarity under these,” Bhattacharjee said.
“Most importantly the special emphasis to facilitate installation of solar capacity with an additional allocation of Rs 19,500 crore for Production Linked Incentive for the manufacture of high-efficiency modules, with priority to fully integrate manufacturing units from polysilicon to solar PV modules give a boost to solar power which would be beneficiary to expedite the transition to green energy,” Bhattacharjee said.
The promotion of chemical-free natural farming although with a limited application would be keenly watched for eventual wider usage, he said.
It is interesting to note the changes ushered in SEZ Act where for the first time states have become partners in the development of service hubs, he also said.
The Union Budget projected the vision of the government stressing macro-economic level growth focus with a microeconomic level all-inclusive welfare focus, promoting digital economy with emphasis on infrastructural growth.
“Although it will be difficult to pinpoint any tea industry-centric provisions under the Union Budget, yet some subject do impinge upon the tea industry. The tea industry is looking forward to “Ease of Doing Business” that should liberate the tea industry from multiple statutory obligations,” he said.
In respect of the tea industry, the provision made in the budget captioned Prime Minister’s Development Initiative for Northeast (PM-DevINE) will be implemented through the North Eastern Council (NEC).
It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on the needs of the northeastern region. This has the scope of projects sponsored by both Central and state governments however priority will be given to those posed by the states. Allocation of Rs 1,500 crore will be made and this also Promotes Scientific Organic Agriculture in Northeast, Bhattacharjee said.
In continuation to the “Har Ghar Nal Se Jal”, an allocation of Rs 60,000 crore has been made which would greatly enhance the scope of the provision of safe drinking water of which the tea industry worker would be benefitted, Bhattacharjee further said.
Furthermore, the PM-Awas Yojna for eligible beneficiaries would include the tea industry workers and dependents residing in the gardens. This has to be viewed in the context of the provision of section 92 of Occupation Safety Health Code Act 2020, he added.