GST Cut on Kendu Leaves to Boost Tribal Livelihoods, Says Odisha CM

In a significant policy shift, the central government has slashed the Goods and Services Tax (GST) on kendu leaves from 18% to 5%, a move welcomed by Odisha Chief Minister Mohan Charan Majhi.

Addressing the press in New Delhi, Majhi emphasized that the decision will directly benefit tribal communities engaged in kendu leaf collection and trade—many of whom belong to economically weaker sections.

The Chief Minister highlighted that the tax cut is expected to increase market demand and improve earnings for thousands of rural collectors. “This is a step toward inclusive growth and financial empowerment,” Majhi said, adding that the reform aligns with broader efforts to ease the burden on farmers and the middle class.

Majhi also pointed to reductions in GST on agricultural equipment, which will lower input costs for farmers, and praised reforms in the coal sector that promise economic gains for Odisha.

Additionally, he noted that reduced GST on health insurance could encourage wider adoption across income groups.

Calling the tax reforms “pro-people and pro-rural,” Majhi lauded the Modi government’s commitment to strengthening grassroots economies and promoting financial well-being.