Budget: tea cautious, tourism dismayed

Hunger strike continues for day five (photo: Rabin Rai)

Siliguri, Feb. 28: The tea industry today said the reduction in custom duty on micro-irrigation equipment in the Union budget could benefit the sector, but added that they would have to study the budget further to make a final assessment.

However, the tourism sector felt let down by the budget as an extra tax has been imposed on hotels with a tariff of Rs 1,000 or more a day.

“There has been an announcement that the basic customs duty on micro-irrigation equipment has been reduced. It is definitely a step to be welcomed as we need to spend a substantial sum on irrigation on tea estates. But, regarding the waiver in customs duty on agricultural equipment, we need to know whether tools used by us has been included in the list,” Monojit Dasgupta, the secretary general of the Indian Tea Association, told The Telegraph from Calcutta today.

Dasgupta said the Union finance minister had also announced that 130 new items would be brought under the ambit of excise duty. “But we have to know whether tea figures in the new list as there is no excise duty on the brew at present. I have to wait for a few days to study and get to know better the implications of the budget.”

The tourism industry clearly expressed its disappointment at the budget.

“As we were badly hit by the agitation in the Darjeeling hills, we had sent a letter to the Union finance minister requesting a waiver of taxes,” said Samrat Sanyal, the president of the Eastern Himalaya Travel and Tour Operators’ Association.

“But instead of a waiver, we have been slapped with an extra service tax,” he added.

Sanyal said it was also disappointing that there had been no specific announcement in the budget to develop tourism in north Bengal.

“We have been suffering losses with few tourists going up to the Darjeeling hills. In fact, even tourists to Sikkim have become fewer because of the frequent blockade of NH31A. Also, now, the trouble has spread to the Dooars. What we needed now is some extra oxygen for our trade, not more taxes. This will have a negative impact on the industry,” said Sanyal.