SCs, STs, BCs will be worst hit by tax increase on handloom: KTR

Hyderabad: Textiles Minister KT Rama Rao, demanding the Centre drop its proposal to hike GST on textiles and handlooms from five per cent to 12 per cent on Sunday, said that SCs, STs and BCs who constitute 70 per cent of the families in the handloom sector would be the worst hit by the decision. […]

Hyderabad: Textiles Minister KT Rama Rao, demanding the Centre drop its proposal to hike GST on textiles and handlooms from five per cent to 12 per cent on Sunday, said that SCs, STs and BCs who constitute 70 per cent of the families in the handloom sector would be the worst hit by the decision.

In a letter to Union Textiles Minister Piyush Goyal on Sunday, the Minister pointed out that a striking aspect was that 72 per cent of women were actively involved in the work. “It is the responsibility of the Central government to extend all support to these sections. Income of about 67 per cent of families was not more than Rs 5,000 and incomes of another 26 per cent families was less than Rs 10,000. Considering all these factors, increasing GST to 12 per cent is definitely not sensible,” he asserted.

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In the last two years, due to the pandemic, prices of cotton and silk yarn had increased by nearly 30 to 40 per cent, as also prices of chemicals used for processing, the Minister said. About 80 per cent of the units are in the MSME segment and fixing the GST rate at 12 per cent for fabrics and garments would hit the powerloom and handloom weavers adversely, he said. “The textile sector, in fact, requires additional working capital. The industry and the market cannot absorb the additional burden of seven per cent. This apart, it will lead to higher prices for the common people,” Rama Rao said.

The world over, people are consciously switching to handmade and eco-friendly products and processes, he said, adding that countries like Bangladesh were prospering in the sector. “If the Textiles Ministry aims to achieve its grand plans of increasing handloom exports to Rs.10, 000 crore and doubling the production to Rs.1.25 lakh core in the next three years, then it should be investing in weavers instead of trying to drive them out of existence,” he said.

KTR takes a dig at Modi

Prime Minister Narendra Modi’s recent photo-op event of dining with construction workers of Kashi Vishwanath Dham Corridor provided the ideal fodder for Industries Minister KT Rama Rao, who wondered where the love towards migrant workers was when many workers were walking hundreds of kilometres during the Covid lockdown.

Sharing a picture of the Prime Minister having lunch with the workers, the TRS working president on Sunday tweeted: “Wonder where this love and empathy was when millions of migrant workers were walking hundreds of kilometres.”

Rama Rao went on to point out: “In fact Government of India coerced the States for train fares for Shramik rails. When elections are on, dining with workers otherwise they are left to their fate.”

Many Twitter users echoed the TRS working president’s views. Dinesh Chowdary tweeted: “When they themselves have claimed that they do many Jumlas for elections, then this comes naturally to them anna.”

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