asked the Minister for Industry and Commerce whether the State Government of West Bengal, from which State 80 per cent. of this country's tea requirement is shipped, has for the past several years imposed a tax of approximately 1¼d. per pound on all tea coming within its jurisdiction, other than tea for consignment to London.
Ceisteanna—Questions. Oral Answers. - Tax on West Bengal Tea.
I understand that the tax referred to by the Deputy was imposed by the State Government of Bengal, in May, 1956. The tax does not apply to tea consigned on behalf of the producer for subsequent sale in any tea market outside India, whether in London or elsewhere. In the opinion of Tea Importers, Limited, this tax, like other charges on tea imposed by the Central Government and State Governments of India, is payable by the seller and not by the buyer. It is not known what is the objective of the tax which appears to be contrary to the declared policy of the Central Indian Government to favour direct purchases of tea in India. Representations on these lines were made by Tea Importers, Limited, to the Indian Tea Council immediately after imposition of the tax and I have since caused representations to be made to the Indian Government in the matter.
Will the Minister say why is it a matter for representation if the tax is payable by the seller and not by the buyer?
I admit there is a certain inconsistency. If the view of Tea Importers, Limited, is correct that tax is payable by the seller of the tea and does not affect the price of tea sold at the auctions then we have not much interest in the matter; but in so far as it indicates support for a policy of sending tea on consignment to auctions in other countries, we are seeking clarification. So far as we know it is the policy of the Indian Government to favour the direct purchase of tea in India and not the sending of tea on consignment for auction abroad. It is possible that what has happened in the State of Bengal arose out of internal Indian politics and I do not imagine it is a situation which can last very long.