It is an achievement for the State of Arunachal Pradesh as the proposal was accepted and overwhelmingly supported by all the states of North Eastern States and at the same time bamboo has became the binding thread for the entire North Eastern Region in the 23rd GST Council meeting. Though the proposal was made by Arunachal Pradesh, it will not only benefit the state but all the North Eastern States equally.          

As a large number of tribal population of the State depends on bamboo for their livelihood, Mein proposed to exempt the tax on raw bamboo and reduce the rate on bamboo & cane furniture from 18% to 12% in the GSTC meeting.

He said that bamboo is an intrinsic part of the social fabric and tribal way of living for the tribes of Arunachal Pradesh. He informed the GST Council that bamboo and cane is used as building materials right from house construction to the numerous domestic purposes and in crafts making.  

He further said that bamboo was exempted in the VAT regime, as it has local importance, as poor people earn their livelihood by selling bamboo and its products. However, with the implementation of GST and levying tax @ 5% on bamboo and 18% on bamboo and cane furniture, the local industry has been badly affected and local people have an apprehension that it would affect their livelihood too, he said.

He requested the GST Council to exempt raw bamboo and cane and reduce the tax to 12% from 18% on bamboo and cane furniture to save the poor people of Arunachal Pradesh as they depend on the production and consumption of these commodities. Further stressing his point, he said that bamboo cultivation reduces the pressure on timber and if bamboo and cane industry is not patronized then illegal deforestation will increase as wooden furniture also attracts 18% GST.

The points made by the Deputy Chief Minister was well received and the GST Council agreed to reduce GST rate on bamboo and cane furniture from 18% to 12%.