Our Track Record
Achievements through the decades
Through sustained representation of the industry's concerns before both its members and the wider sector, the Association has secured a series of milestones for Karnataka's planters since its inception. The principal achievements are listed below.
The Export Duty of Rs. 2 per kg on Tea was removed.
The Union Government exempted the levy of Wealth Tax on plantations from the assessment year 1983.
The Union Government abolished the Export Duty on Coffee.
Coffee and Tea were excluded from the purview of Central Excise with effect from 28 February 1993.
In the State Budget, the maximum rate of Agricultural Income Tax was reduced for the non-corporate sector from 55% to 45%, and for companies from 65% to 60%.
In view of the financial crisis facing the industry, the Government of Karnataka exempted coffee holdings of 50 acres and below from Agricultural Income Tax — a relief continued for five years from 2000–01.
The Union Government introduced the Special Coffee Term Loan (SCTL) Scheme to benefit coffee growers unable to repay bank loans due to the crisis in the industry.
The SCTL package was further modified, with two-thirds of the interest liability during the three-year moratorium period absorbed equally by the Central Government and the banks.
The Karnataka Budget exempted individuals from Agricultural Income Tax. The maximum rate for companies was reduced from 50% to 35%, and for firms from 40% to 30%.
Coffee was included in the Prime Minister's Vidharbha Package, under which interest due on all outstanding loans as on 1 July 2006 was exempted.
Following sustained representations by the Association, the GST Council exempted black pepper sold directly by agriculturists from GST at its meeting on 21 December 2024 — providing significant relief to coffee and pepper growers by reducing their tax burden.