Sajad Lone Voices Concern Over Proposed Tax Slab Revision Impacting Kashmiri Handicrafts Industry

Sajad Lone, leader of the Peoples Conference, voiced his worries on Friday about potential changes to the tax rates for Kashmiri handicrafts. He believes this could severely impact the industry. Meanwhile, the Jammu and Kashmir administration has approached the Union Ministry for Commerce and Industry. They have requested a reduction in the GST rate from 12% to 5% across the board.

In a post on X, Lone expressed hope that any increase in GST on shawls is merely an oversight. He emphasised that handmade shawls are rare and represent Kashmir's rich history and craftsmanship. "The Kashmiri shawl embodies our history and is an ambassador of our artistry," he stated. The industry offers jobs to thousands of skilled artisans.

Impact on Artisans and Industry

Lone, representing Handwara in north Kashmir, highlighted the economic challenges faced by artisans. In today's machine-driven economy, where AI threatens jobs, these skilled workers remain competitive. "Why are we eroding their competitiveness by putting them in higher GST tax brackets sic," he questioned. Higher taxes could reduce demand, leading to unemployment for many artisans.

The Jammu and Kashmir government has pledged to protect the interests of its renowned handicraft sector. This sector is crucial for the livelihoods of many artisans involved in this traditional craft. An official spokesperson responded to media reports about the proposed tax changes at the upcoming GST Council meeting.

Government's Assurance

The spokesperson clarified that discussions with the Union Ministry for Commerce and Industry are ongoing. The aim is to lower the GST rate from 12% to 5%, even for shawls priced over Rs 1,000. This would lessen the tax burden on this artisan-led industry and enhance its marketability.

Describing handicrafts as a labour-intensive industry, the spokesperson noted that it employs 80% of the workforce. Efforts will be made to revitalise this sector amid global competition and machine-made replicas. The government remains committed to supporting this heritage craft.

Lone appealed for a return to lower GST brackets, stressing that this cottage industry needs encouragement. "It really does not make sense to tax these hands," he said, urging support for these skilled artisans who contribute significantly to the economy.