Proposals in the State budget to reduce Value Added Tax (VAT) on cardamom to two per cent from the existing five per cent and expansion of area under horticulture crops are expected to benefit the plantation sector in the State.
Suresh Menon, chairman of Planters’ Association of Tamil Nadu, has said in a press release here that small growers will benefit with expansion of area under horticultural crops to 27.18 lakh acres from the current 25.95 lakh acres. However, the difference in VAT rates for teas sold by the bought leaf tea factories and co-operative tea factories (one per cent) and the corporate tea sector (five per cent) has not been addressed in this year’s budget too, he said.
