Committee recommends imposition of additional excise duty on tea
The committee appointed by the Union government to study the social cost of tea gardens suggested imposition of an additional excise duty of Re one per kg on packed tea to mobilise funds for subsidising health, other facilities for plantation work...
The duty would be levied only on the tea which is not exported and would generate about Rs 30-35 crore per year, Union Minister of State for Commerce Jairam Ramesh has said.
The committee, headed by O P Arya, Additional Secretary, (Plantations), Ministry of Commerce and Industry, was appointed to streamline, rationalise and harmonise different provisions in different Acts and the financial burden of social cost on the growers.
This fund can be made available to the Tea Board for subsidising the various facilities to the plantation workers.
The committee has pointed out that in North India cost of providing social facility to workers is Rs 4 a kg of made tea while in South India it works out to rs 3.5 a kg.
All the benefits provided in the Plantation Labour Act, 1951 needs to be retained, the committee said in its report, a copy of which was received here last night. There is need to have improved social security system for the workers in place. it added.
The committee studied various mandatory requirements under PLA with regard to medical, housing and drinking water facilities to the tea garden workers. IT said the system of wage settlement by bipartite/tripartite agreement should continue, but the minimum wage should not be less than the medical facilities.
The employer has to pay the cost of treatment for its employees for such medical facilities.
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