Bhubaneswar, Sept 4: In a major relief for kendu leaf pluckers and workers across Odisha, the GST Council has approved a significant reduction in the Goods and Services Tax (GST) on kendu leaves—from 18% to just 5%.

The decision was announced during a press briefing by Odisha Chief Minister Mohan Majhi following the 56th GST Council meeting held in New Delhi.

The Chief Minister hailed the move as a “reassuring decision” for thousands of kendu leaf workers. He emphasised that the reduced tax rate will boost kendu leaf sales, improve earnings for workers, and ensure timely payments from contractors and organizations.

The Chief Minister said the tax reduction from 18 per cent to 5 per cent on kendu leaf will benefit the tribal communities. This will result in increase in volume of sales of kendu leaves through government procurement agencies and help the leaf collection workers in getting higher price from vendors in the de-regulated areas.

Additionally, the state government reaffirmed its commitment to support kendu leaf workers by ensuring easier access to essential items such as footwear and other daily-use materials. There was also mention of potential price reductions in agricultural tools, further aiding rural livelihoods.

Also read: Two Major GST Slabs Now 5% And 18%, 40% For Super Luxury Items

The 56th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, lasted over 10 hours and focused on rationalizing tax slabs to support middle-class families and key sectors like agriculture, education, and automobiles.

The reforms align with Prime Minister Narendra Modi’s vision for a “Developed India,” aiming to simplify taxation and empower grassroots communities.