Tea traders on Cess Levy

The Colombo Tea Traders' Association (CTTA) has long been concerned that the funds collected on tea exports, in the form of Cess, which are meant to be disbursed exclusively for industry purposes, are not being put to best use, in the context of the needs and the benefit of the industry.

Enhancing productivity, promoting Sri Lankan owned brands, stimulating value added exports, facilitating food hygiene initiatives and supplementing research and analysis programs are some of the priority areas identified by the Industry for the investment of these funds, a media release from the Association said.

The release said the appointment of D. M. Jayaratne, one of the most senior members of the Government and a very experienced politician, as the Minister of Plantation Industries, in the recent Cabinet reshuffle, and the simultaneous restoration of this portfolio to Cabinet status, inspires optimism in the industry.

We exhort the Minister to give immediate and serious consideration to the concerns of the industry in regard to the entire Tea Cess issue and the application of the funds it generates.

The current cess levy imposed on tea exports is Rs. 4 per kg. and on average, over 300 million kgs. of tea are exported each year. Originally, these funds were directly assigned to and controlled by the line Ministry.

However, now, they are dispensed to the Ministry of Plantation Industries by the State Fiscal Authority, in irregular instalments, with a progressively increasing share, which at present amounts to almost a third, being retained for other purposes, depriving the Industry of desperately required financial assistance, the release said.

Much to the chagrin of the Trade, whatever funds that are ploughed back into the Industry are, for the most part, being squandered on maintaining exceedingly over-staffed, largely unproductive, State Institutions, associated with Industry sectors, which serve as an useful vote-base for successive Governments.

This brings no return to the Industry and merely subsidises the livelihood of political supporters of the respective parties in power.

The CTTA has been agitating for many years, to no avail, for representation on the Tea Cess Committee, which determines the distribution of these funds, so as to be able to exert some influence on their allocation and disbursement. However, these persistent appeals have fallen on deaf ears.

The CTTA is unable to understand the reluctance of the Ministry of Plantation Industries to acquiesce to this request, as the rubber and coconut Industries have already been granted such representation on their respective Cess Committees and contribute positively to the appropriate use of the funds, through their intimate knowledge of the industries.