Darjeeling’s BJP MP Raju Bista has sought Prime Minister Narendra Modi’s intervention in providing financial relief to the tea industry from the 2 percent TDS (Tax deducted at source) on cash withdrawals of over Rs 1 crore.
According to Mr Bista, the tea industry has been facing “uphill challenges” in its revival amid the Covid-19 pandemic. Also the BJP’s national spokesperson, Mr Bista yesterday informed Mr Modi about the problem of inadequate banking infrastructure due to geographical constraints, while workers prefer getting paid in cash as internet connectivity and customer services are poorly managed in the garden areas.
“Not only that, as 50 percent of workers’ salaries are paid every fortnight, the tea garden management across the country are facing huge losses. Even workers have to take a day off from their work, which costs them a day’s wages,” the MP has said in a letter he has sent to the PM.
“Tea industry be granted an exemption from paying 2 per cent TDS for cash withdrawal and moratorium be placed on collection of TDS for cash withdrawal by tea gardens for the next one year,” Mr Bista, who is also a member of the Tea Board, proposed.
“May this one year moratorium period be utilised to setting up and developing proper banking infrastructure in the region so as to enable smooth functioning of online banking services,” he added.
It may be mentioned here that planters are not happy with Union finance minister Nirmala Sitharaman’s proposal on 5 July to impose 2 percent TDS on cash withdrawals exceeding Rs 1 crore in a year from banks.
They have argued that tea estates are located in remote corners and far away from banking institutions, and that it has been an established practice of the tea industry since time immemorial to disburse wages and bonus to workers in cash, weekly or fortnightly, involving a huge amount of cash withdrawals for each plantation. According to the planters, even the operating Trade Unions demand that the management make payments in cash