Due to the crisis in the sector, Kerala has decided to scrap the plantation tax. On Thursday this was announced by CM Pinarayi Vijayan in the Legislative Assembly.
Vijayan said that the decision was taken on the recommendations of a committee of secretaries & the Justice Krishnan Nair Commission appointed by the last government to study and report on the crisis in the sector.
The government had also decided to freeze the collection of Agricultural Income Tax (AIT) from the plantation sector.
The lines (row homes) in which plantation workers are housed would be exempted from building tax. Instructions have been issued to the local government institutions concerned on this.
The seigniorage (fees) being levied on felled rubber trees would also go. A felled rubber tree would fetch Rs. 5,000. Of this, Rs. 2,500 need to be paid as seigniorage. This has been found to be too high, the Chief Minister explained.