Can tea gardens bail out cash-strapped govt?

KOLKATA: In an unprecedented move that also speaks of desperation, the cash crunched West Bengal government is eyeing tea gardens in north Bengal to mop up revenue under its small savings schemes.
The state government has urged the Dooars Branch of the Indian Tea Association (DBITA) to inform all its members to encourage their respective work force in different tea gardens to invest in different small savings schemes that are available in post offices.
But unfortunately for the state, the move has come at a time when most of the tea gardens are faltering in timely payment of salary and wages to its workers.
Tea industry sources said that the state govenrment''s move has come in the wake of a drastic decline in its earnings from agricultural income tax levied on tea companies as well as in the share that the state government gets out of the central income tax.
The state government levies 40 per cent agricultural income tax on tea gardens. The revenue earning of the state government out of such tax collection has virtually become nil now as almost all companies have slipped into the red.
Besides, the state government''s share under the central income tax has also declined drastically as tea companies are currently reeling under losses.
A memo sent to the DBITA from the office of the district magistrate and collector of Jalpaiguri said that the "state government is trying to envisage a growth in overall revenue augmentation. You are requested to inspire your member tea gardens to encourage their workers to deposit their savings through various small savings schemes available in post offices".
Interestingly, the state government took the plea of curbing "illegal money-lending activities" in trying to garner deposits under the small savings schemes. The state government has asked DBITA to informed the government officials concerned of any incident of illegal money-lending activity.
The state government has also instructed DBITA to ensure "efficient" collection of professional tax from all the tea gardens.
Meanwhile, the state government has reduced the salami in case of transfer of sick gardens. The matter was decided by the state government after its land and land revenue department agreed that the definition of a sick industrial company, as defined under the SICA Act 1985, could also be applicable for tea companies to ascertain their sickness.
The state government''s decision would be applicable for transfer of all gardens within March 31, 2004.