The high VAT on a commodity of which over 90% is produced and sold purely for exports, wherein all of the VAT will need to be refunded to stay competitive in the world market, the imposition of VAT on tea has caused grave concern amongst the industry,” TEA said in a statement.

It said the tea industry value chain involves a number of stakeholders; over 400,000 tea smallholder farmers who account for over 70% of the tea production, 21 regional plantation companies, about 600 tea manufactures who are the sellers of tea as well, over 300 tea exporters/buyers and eight brokers who conduct the weekly tea auction