Srinagar, Dec 29: Kashmir’s main textile markets in Sarai Bala and MR Gunj will observe a complete shutdown on Thursday against the central government’s decision to hike the Goods and Services Tax (GST) on fabrics to 12 percent from the current 5 percent.
The Sarai Bala Traders Welfare Federation and the MR Gunj Traders Welfare Federation, in a joint statement, said tens of thousands of people associated with the sector were already suffering in the aftermath of the Covid-19 pandemic and lockdowns.
The new tax hike had dealt a “deathly blow” to them, they said.
The two trade bodies said the day-long strike that would close hundreds of textile shops in Srinagar came the same day the textile industry and its allied industries in Gujarat’s Surat have called for a complete shutdown on Thursday.
The textile businessmen in the city would strike on the call by the Federation of Surat Textile Traders Association (FOSTTA), two days before the new tax regime will be effective from Jan.1ç 2022.
Despite strong pushback from the industry, the government said it would impose a uniform GST of 12 percent on man-made fiber and readymade garments.
The textile industry people have said it would increase prices and add to inflation worries, and subsequently hurt demand and disrupt the entire sector.
“The government is acting thoughtlessly and putting stress on millions of people who earn their livelihood from the textile industry in the country. We are still reeling under and suffering hugely from the effects of the pandemic that has incurred huge losses in the past two years,” President Sarai Bala Traders Welfare Federation Hilal Ahmed khan said.
“It’s unfortunate that the central government is putting more stress on the industry which is still recovering from lost sales and higher input costs for the past two years.”
MR Gunj traders body president Khursheed Ahmad said the government needed to understand the support the sector is providing to millions of households in India, and any strain on the industry would mean causing stress to these families.
“The government must act responsibly and impose a 5 percent uniform GST on the sector,” he said.
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