To ensure smooth roll out of Goods and Service Tax(GST), the Government of India has abolished cess on rubber. This will come into effect from the date of the GST roll-out expected to be July 1, 2017, the Government says in a notification.
As per the Rubber Act 1947, the Government has been collecting a cess on natural rubber to fund the various development activities undertaken through the Rubber Board for increasing domestic production of natural rubber.
This was initially collected direct from farmers. From 1970s onward, this is collected from end-users (product manufacturers). Cess is currently levied at the rate of Rs2 per kilogram of natural rubber purchased by end-users from domestic market.