Coimbatore (PTI): Union minister of state for commerce and power Jairam Ramesh has assured tea traders that he would take up with the prime minister, who also holds the finance portfolio, their appeal to bring down from four per cent to one per cent, the VAT for tea traded through auction, as prevailing in some other States.

Responding to the appeal made by Tea Traders Association of Coimbatore, after inaugurating web based E-auction facility here last night, Jairam said that the issue would be put forward to the VAT committee, headed by Ashim Dasgupta, West Bengal finance minister.

He said 500 million kg of India's total production of 950 milliion kgs would be brought and sold through e-auction by January 31, 2009. Steps would also be taken to bring high quality teas, being sold through private parties.

By September 2009, there would not be any physical facility in the present auction Centres--Guwahati, Kolkatta, Siliguri, Jalpaiguri, Kochi, Coimbatore and Coonoor. All auctions would be only through the Internet, he said.