The Hindu : Kerala News : Plantation sector for price-related wages

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Monday, Sep 27, 2004

Kerala

Kerala

Plantation sector for price-related wages

By Our Special Correspondent

KOCHI, SEPT. 26. The 65th annual general body meeting of the Association of Planters (Kerala) has come up with a suggestion to introduce price-related wages to bail out the ailing plantation sector.

Speaking at the meeting recently, the APK chairman, A.E. Joseph, said that some of the long-pending demands of the plantation industry were yet to be addressed seriously by the powers that be. "Whenever the price of any plantation produce goes up, the Government increases taxes on that crop and raises wages for the workers. They forget to reduce the taxes and wages when the prices come down," he added.

He, however, welcomed the Government move to waive the plantation tax for the year 2003-04 and 2004-05 for tea and coffee. One of the long-pending demands of the industry is to shift the plantation sector from HT-I industrial category to HT-III agricultural. The Government is yet to take a positive decision on this demand though it is sympathetic to the plantation sector.

He said the State Government was levying the highest agricultural income tax whereas countries like China had abolished it. The Tamil Nadu Government had also abolished it. The plantation industry has been urging the State Government to enlarge the scope of the definition of `Plantations' under the Land Reforms Act to include cashew, vanilla, medicinal plants, bamboo and so on. These crops, apart from generating substantial income to the grower, can support existing plantation crops during crises like the one being experienced now.

The high purchase tax on rubber in Kerala has been prompting smuggling of rubber at an alarming level. If purchase tax is kept at a reasonable level, the State could check smuggling and at the same time improve its collection of the tax. This is another case of delay in taking decisions by the State Government which has caused the Government considerable revenue loss, he said.

Philip Mathew, managing director, Malayala Manorama, who was the chief guest, gave away merit scholarships to the children of plantation workers who have excelled in the various examinations.

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