Pashmina shawls not considered for higher GST slabs: Omar

Jammu and Kashmir Chief Minister Omar Abdullah talking to the media. file. | Photo Credit: ANI

J&K Chief Minister Omar Abdullah on Saturday (Dec 21, 2024) said his government will ensure that the famous pashmina shawls are not considered in the higher slabs of Goods and Services Tax (GST) and warned that such a move would be a threat to lives. Pashmina shawl industry.

Mr. Abdullah, who attended the 55th meeting of the GST Council in Rajasthan, said that while some things were agreed upon in the meeting, some things were postponed. “There was a lot of speculation that the GST would be hiked on shawls, especially pashmina shawls, so we were ready to make sure that didn’t happen. Thankfully, it was not taken up and we will ensure that such a thing is not considered in the future as it could be life-threatening for our pashmina shawl industry,” said Mr. Abdullah.

Over the past few days, there have been growing protests in Kashmir from political parties including the Peoples Democratic Party (PDP) and traders against the proposed GST hike from 12% to 28% on Kashmiri shawls. Former Jammu and Kashmir Finance Minister Haseeb Drabu also opposed the move. “The rate band of 28%, the highest band, is a punitive rate meant to reduce the consumption of so-called “demerit” goods. In fact, a subset within the rate band is the category of “sin goods” like cigarettes, for example. 28% on Kashmiri shawls By imposing the tax, the integrity of the GST rate regime has been undermined. Cashmere shawls above 10,000 are a luxury product and Kashmiris are under the mistaken impression that this category should be taxed at the highest punitive rate. The shawl appears to be placed in this bucket. But that is a misconception,” Mr. Drabu said while writing for a local daily.

PDP leader and former minister Naeem Akhtar called the move “an attempt to crush Kashmir’s artistic talent with excessive tax burden”.

“Heavy taxes will make Kashmiri shawls unaffordable, threatening to destroy a centuries-old industry. This is tantamount to reviving the oppressive practices of autocratic Maharaja rule, where shawl makers were crushed under heavy taxes. Are we witnessing a deliberate attempt to plunge Kashmir into a deep crisis,” asked Mr. Akhtar. .

The latest developments in Saturday’s GST meeting have calmed nerves to some extent. “We thank Union Finance Minister Nirmala Sitharaman and the members of the GST Council for their thoughtful decision not to increase the GST rate on our traditional Kashmiri shawls. We are hopeful that the upcoming GST Council meetings will not see any increase in GST on Kashmir shawls,” Kashmir Chamber of Commerce and Industries (KCCI) said. General Secretary Faiz Ahmed Bakshi said.

According to KCCI, the shawl industry supports more than 300,000 artisans and provides livelihood opportunities to many marginalized communities. “The proposed hike would have dealt a devastating blow to the Kashmiri shawl industry, potentially classifying these cultural treasures under the ‘sin tax’ bracket. This classification would have been particularly detrimental to the artisans who depend on this craft for their livelihood,” said Mr. Bakshi.