The Tea Industry is unhappy with the budget as it proposes 2% TDS on annual withdrawal of over Rs 1 crore.
Asthe tea industry pays its vast labourers weekly and in cash they need towithdraw the money in cash and this has caused serious concern.
TheIndian Tea Association (ITA) in a statement said that the announcement ofimposing 2% TDS on cash withdrawal exceeding Rs. 1 crore in a year from a bankaccount in the Union Budget will compromise the liquidity of tea estates.
The ITAin a release issued on Friday said that in the absence of adequate bankinginfrastructure in tea garden areas and lack of access to banks for tea gardenworkers, the tea garden management is required to pay workers wages in cash.
Inthis backdrop, a 2% TDS on cash withdrawals of over Rs. 1 crore in a year willcompromise the liquidity of tea estates and cast an additional burden on theindustry.
ITAhas appealed to the government to exempt the tea industry from this provisiontill such time the bank accounts of tea garden workers are made operational.
Inthe release ITA said that the thrust on social welfare schemes in the budget isa welcome step. It is expected that tea estate population would be provided amore comprehensive coverage on schemes related to housing, education,sanitation, medical facilities etc.
Therelease added, "In the budget it has been announced that multiple labour lawswould be streamlined into a set of four Labour Codes. The wage package for thetea sector is a combination of cash and in-kind benefits like housing,sanitation, fuel, education, medical facilities, water supply etc. The Code onwages has proposed a national minimum wage. We would urge that due recognitionis given to the in-kind benefits being provided by the management to the teagarden workers and their families and such in-kind benefits are included aspart of wage."
Teaindustry provides direct employment to over 1.2 million workmen. In keepingwith the thrust on employment growth, labour intensive industries like tea needto be adequately incentivized to protect and grow the large employment base.
