Tea Producers Accuse Indian Authorities of Trying to Impose Tax on Tea Export from Nepal

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Tea Producers Accuse Indian Authorities of Trying to Impose Tax on Tea Export from Nepal

August 12: Nepal’s tea produced in Ilam does not require customs duty for being exported to India. However, the tea producers have drawn the attention of the government stating that India is trying to bring the tea exported from Nepal under the ambit of tax.

Organising a press conference in Kathmandu on Wednesday, the tea producers urged the government to take necessary measures so that the tea export from Nepal is not affected by the decision taken by the Government of India.

The tea producers also urged the government to resolve long-standing issues related to tea farming in the country.

They accused the Tea Board of India of trying to discourage export of tea from Nepal against the trade agreement between the two countries. They also said that the board did not issue any prior notice regarding this issue.

The tea manufacturers said that the Indian authorities are trying to label the tea produced in Ilam as of low standard in order to bring the tea under the purview of tax although the tea is famous in the world market. They expressed concerns regarding this issue being discussed in the parliament of India.

The tea producers requested the Government of Nepal to resolve this issue through diplomatic means by forming a high-level talks team.

They expressed concern that more than 150 industries will be closed if the export of tea to India comes to a halt.

Ilam is famed for producing Nepal’s orthodox tea. This district alone produces 90 percent of the total orthodox tea produced in the country. Tea farming is spread in 13,000 hectares of land in Ilam. More than 26,000 people are directly involved in tea farming in the district while 80,000 people have been employed in this business.

  

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