Hyderabad: Telangana’s Industry Minister K T. Rama Rao on Friday urged Prime Minister Narendra Modi to intervene and save the weavers by withdrawing plans for increasing the Goods and Services Tax (GST) on handloom and textiles.
The Minister reminded the Prime Minister of his call to strengthen the handloom sector on National Handloom Day.
Rama Rao said enhancing GST on handlooms and textiles will be a death knell for the industry.
“Hon’ble @narendramodi Ji, on the National Handloom Day you had talked of strengthening #Vocal4Handmade. Contrary to the idea, your government has enhanced GST on handlooms and textiles from 5 to 12 per cent which will be a death knell for the industry. Request you to intervene and save weavers,” tweeted KTR, as the Minister is popularly known.
On December 19, KTR had written a letter to Union Textile Minister Piyush Goyal, urging him to withdraw the plans of increasing GST from January 1, 2022.
Stating that the textiles, especially the handlooms sector were going through a tough phase for the past two years due to the impact of Covid-19, KTR said, revising the GST from the current 5 to 12 per cent would serve as a death blow to the industry.
After the agriculture sector, the textiles and handlooms sector provide the highest employment in the country. Considering the current scenario, the need of the hour was to extend additional advantages and incentives to the sector, he added.
KTR pointed out that never in the country’s history were taxes levied on handlooms and the Centre’s move to levy 5 per cent tax was strongly opposed by the textiles and handlooms sector across the country.
“The current decision to impose an additional seven per cent GST on the handlooms would leave the sector crippled. Telangana produces world-class handlooms and weavers are worried a lot due to the Centre’s decision to increase GST,” KTR wrote.