Tea Tax India 2025
About Tea Tax India 2025
India is the second largest tea producer in the world. Tea has historically been taxed through GST at 5 percent for loose leaf tea and 18 percent for branded tea. In 2023, the Indian government considered raising GST on tea to 18 percent across the board, which the tea industry argued would hurt exports and employment. India produces over 1.3 billion kg of tea annually, supporting over 1 million workers. The tea industry is concentrated in Assam, West Bengal, and Tamil Nadu. The GST Council ultimately kept the rates at 5 percent for bulk tea and 12 percent for packaged tea. The tea tax debate highlights the tension between revenue needs and economic impact on agricultural industries.
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