Excelsior Correspondent
JAMMU, Dec 9: The Chairman of PHDCCI Kashmir, AP Vicky Shah, has raised concerns over proposed changes to the Goods and Services Tax (GST) structure that could negatively impact the handicraft sector.
In a letter sent to the PHDCCI Head Office, Shaw urged the GST Council to reconsider any potential tax hikes on handicraft-based textile products, ahead of the upcoming 55th GST Council meeting on December 21, 2024.
As per the letter, currently, handicraft textiles are taxed at 5% for products priced up to Rs 1,000 and 12% for those above Rs 10,000.
However, the proposed increase to rates of 18% or 28% would severely affect artisans who depend on this sector for their livelihood.
The letter mentioned that many artisans are already facing financial difficulties, and a tax hike would make their situation even worse.
It further highlighted that handicraft products are largely made up of artisan labour, which accounts for around 80% of the total product cost, while raw materials make up only 20%.
Therefore, any increase in GST would essentially be a tax on the labour of the artisans, worsening their financial instability, the letter said.
To address these issues, PHDCCI Kashmir has suggested that all handicraft-based textile products be placed under a single GST slab of 5%.
“This would simplify the tax system and help artisans by increasing their earnings and boosting sales,” AP Vicky Shah said, adding that it would encourage traders to invest in and promote handicraft products, promoting growth in this important sector.
He has also appealed to the Textile Committee at the Head Office to strongly urge the GST Council to reconsider any proposed tax hikes for handicraft textiles as such a move could threaten the livelihoods of many artisans dedicated to preserving cultural heritage.
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