Bengal tea trade unions demand tax reforms

Kolkata, Feb 25 (IANS) The central government needs to simplify the tax structure in the tea industry as it is burdening the sector, a trade union leader has said.

"The government levies agricultural income tax besides corporate tax which is overlapping. It is an industry which is taxed right from the beginning of soil preparation to cultivation and finally to the end-product. It needs to be reformed," leader of West Bengal Joint Forum of Trade Unions of Tea Industry Ziaul Alam told IANS here.

Alam said the nature of government taxes is affecting the tea trade and needs a thorough revision.

"The entire tax structure needs to be reformed and simplified," he said.

He said the central and state governments should invest the taxed money to raise standards in the industry.

"We want the government to invest in tea the same amount it taxes," he said. Alam said the government earns at least Rs.5,000 crore from tea export taxes alone.