Srinagar, Dec 21: People’s Conference chief Sajad Lone Friday expressed concern over the reports of proposed revision of tax slab for Kashmiri handicrafts, saying the move would deal a big blow to the industry.
However, the Jammu and Kashmir government said it has already taken up the matter with the Union Ministry for Commerce and Industry, requesting it to lower the GST rate structure from the existing 12 per cent to 5 per cent uniformly.
“I hope increase in GST taxes on shawls is an oversight. Handmade shawls are a rarity. The Kashmiri shawl embodies our history and is an ambassador of our artistry,” Lone said in a post on X.
He said the industry provides employment to thousands of skilled artisans.
“In an economic era donated by machines and an era where AI is threatening jobs, these skilled hands are a rare relic. These skilled hands are still economically competitive. Why are we eroding their competitiveness by putting them in higher GST tax brackets (sic),” he said.
Lone, the MLA from the Handwara constituency of north Kashmir, said, “It really does not make sense to tax these hands”.
“Higher taxes would mean lesser demand and hence lesser supply. Many skilled hands would be rendered unemployed. It will be a big blow to the industry. It is an appeal to please revert to the lowest GST tax brackets. This is a cottage industry and needs to be encouraged,” the Peoples’ Conference chief added.
However, an official spokesperson said the Jammu and Kashmir government has assured to safeguard the interests of Kashmir’s famed handicraft and handloom sector, which is directly linked to the livelihood of lakhs of artisans associated with the heritage craft.
Responding to reports that have appeared in a section of the media concerning the proposed revision of tax slab in the upcoming GST Council meeting, the spokesperson clarified that the Jammu and Kashmir government has already taken up the matter with the Union Ministry for Commerce and Industry.
The ministry has been requested to lower the GST rate structure from the existing 12 per cent to 5 per cent uniformly, including shawls priced above Rs 1,000, to reduce the tax burden on this artisan-driven industry and support marketability, the spokesperson said.
He described handicrafts as a labour-intensive industry that constitutes 80 per cent of the human workforce.
The spokesperson said all efforts would be made to revive the handicrafts sector, keeping in view the stiff competition from global markets and machine-made imitations.–(PTI)
