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India: Tobacco Auctions Come To A Halt Source from: The Hindu 07/26/2018 ITA members stay away resenting levy of higher GST on cured leaves E-auctions in the traditional tobacco-growing areas in Prakasam district came to a grinding halt on Wednesday as members of the Indian Tobacco Association (ITA) protested against alleged imposition of higher GST of 28% on cured leaves procured from the farmers. While 5% GST is collected on tobacco leaves, 28% is charged on unmanufactured tobacco, as it changes hands after processing. But notices have been served on the ITA members for payment of higher GST, according to the ITA sources. Tobacco Board officials swung into action to resolve the issue, as both cigarette manufacturers and tobacco exporters stayed away from the market, putting to trouble the farmers, who were yet to market 16 million kg of tobacco left with them. “The Tobacco Board has taken the issue at the highest level. We hope the efforts will bear fruit,” said Southern Light Soil regional manager G. Ratnasagar. Farmers’ fear “Whether it is truckers’ strike or GST, it is always the farmers who are put to trouble,” lamented V.V. Prasad, secretary of the farmers’ association in Ongole II auction platform. Fearing fall in the market, with traders passing on the higher GST burden to them, Southern Black Soil (SBS) Farmers’ Association secretary P. Venkateswarlu said the Centre should immediately intervene and ensure return of traders to the market. “The higher tax on tobacco will be used by the traders to drive down the prices when we are struggling to get a remunerative price.” he added. Enditem |