Tax Reforms Fuel Growth in Mizoram’s Organic and Eco-Friendly Sectors

Mizoram’s economy relies a lot on its land and forests because the people in Mizoram grow organic spices and fruits, make bamboo crafts, and promote ecotourism. The state’s land and traditional farming make its products special. Lower GST rates have supported these sectors by reducing taxes and giving farmers, artisans, and business owners better chances to earn more.

By reducing GST on important items such as Mizo chilli, ginger, turmeric, bamboo and cane products, processed fruits, and tourism services, the reforms will make Mizoram’s goods more affordable and competitive while supporting employment across rural and semi-urban areas.

Mizo Chilli (Bird’s Eye)

The Mizo Chilli is a staple in traditional Mizo cuisine and other Asian dishes. The state recorded its first official export of 7.5 metric tons to the United States in March 2023, while around 20,000 tons are expected to be traded annually to Bangladesh and other neighboring states.

Farmers and processors of chilli products are expected to benefit directly as GST is reduced to 5% from the earlier 18% on processed and packaged chilli products. The new rate will make chilli cheaper in domestic markets and will also increase Mizoram’s export competitiveness.

Ginger and Turmeric

Ginger and turmeric are very important crops in Mizoram. They are grown all over the state and bring in a lot of money for local farmers. These spices are also sold to other places, making them valuable for trade.

With GST cut from 18% to 5% on processed and packaged products, spice producers in Mizoram will have lower costs and easier access to markets. This will also make Mizoram’s organic spices more competitive in India and abroad, as more people want natural and chemical–free products.

Passion Fruit

Mizoram is the third-largest producer of passion fruit in India. Its cultivation is growing fast because the state has the right climate for it.

With the GST rate cut from 12-18% to 5% on processed fruit products, passion fruit juice and allied products will become more affordable and marketable.

Bamboo and Cane Crafts

Bamboo is an important part of Mizoram’s culture and economy. It grows on almost 51% of the state’s land and is the main material for handicrafts and small–scale industries.

The new GST rate is 5% on bamboo furniture and other handicraft products, which will make bamboo products more affordable and will increase Mizoram’s competitiveness in the national handicraft market.

Tourism and Hospitality

Tourism is a significant source of growth and jobs in Mizoram. The state is becoming a popular spot for ecotourism and adventure travel because of its beautiful hills, green forests, and rich culture.

During last year, Mizoram received approximately 215,265 domestic and 3,884 foreign tourists. With room rates up to Rs. 7,500 now taxed at only 5% and lower costs for service providers, visiting Mizoram will become cheaper for tourists.

For complete information refer the official Press release-