Hyderabad, Dec.19 (PMI): The Telangana Government has strongly opposed the Centre’s decision to increase the GSTon handloom products from 5 to 12 per cent, from January 1,2022 and said it will deal a death blow to the handloom and textile sector.
Minister KTR today addresses a lengthy letter to the Union Textiles Minister Piyush Goel, requesting him to withdraw the decision as it would further worsen the living conditions of the weavers community.. KTR pointed out that the Covid-19 had created a very difficult situation for the handloom sector during the past two years and the present decision would further deteriorate it. He pointed out that even when 5 per cent tax was imposed earlier, the industry had agitated agaist it.
He stated that in Telangana, world famous handloom sarees producing weavers are much worried about the hike in GST. As it is the profitability is less than five per cent and the increase by 7 per cent would result in huge losses to the handloom sector. The demand for handloom products was already decreasing and the present hike would result in further decrease in demand.
KTR pointed out among other things that the cost of yarn and chemicals had already increased dealing a blow to the industry. In this background the present decision might force the closure of handloom units. He said that 80 per cent of the handloom sector is in small and medium sector in the country and, it has already become difficult for revival of the MSME units in view of the exiting taxes. In view of the meager profits in the handloom sector, the new generation would be forced to leave the industry.
The Minister further said it is necessary to look at the handloom sector as one of country’s culture and tradition, instead of as an industry, and withdraw the present hike. (PMI)