Srinagar- In a major relief for artisans and traders in Kashmir’s iconic handloom industry, Chief Minister Omar Abdullah has confirmed that there will be no hike in the Goods and Services Tax (GST) on shawls this year. The announcement comes amid growing speculation about potential increases in taxation on Kashmir’s traditional products, which include the highly prized Pashmina shawls.
Addressing the issue on X (formerly Twitter), the Chief Minister sought to put an end to the rumors surrounding the GST hike. “There had been a lot of speculation that GST on shawls will be hiked, so we had come prepared to ensure that wouldn’t happen. Thankfully, it wasn’t taken up, and we will also ensure that in the future also, something like this is not considered,” he said.
The clarification has been warmly welcomed by artisans and business stakeholders within Kashmir’s handloom and handicraft sector. The industry, renowned globally for its exquisite craftsmanship, was anxiously awaiting confirmation on the GST issue, fearing that an increase would further burden a sector already facing several challenges.
A potential rise in GST could have posed severe difficulties for the handloom sector, which is grappling with issues such as a decline in demand, growing competition from machine-made imitations, and rising production costs. Business chambers in Kashmir had previously voiced concerns, highlighting the negative impact that a higher GST rate would have on the industry, which is a major source of livelihood for thousands of artisans and traders in the region.
Earlier on Friday, responding to certain reports appearing in a section of media regarding the proposed revision of tax slab in the upcoming GST Council meeting, a spokesperson of the Jammu and Kashmir government clarified that the UT administration had already taken up the matter with the Union Ministry for Commerce & Industry.
The spokesperson said they have requested the Union government to lower the GST rate structure from the existing 12% to 5% uniformly, including shawls priced above Rs 1,000 to reduce the tax burden on this artisan-driven industry and support marketability.
PDP President Mehbooba Mufti had expressed concern over the news about proposed GST hike on Kashmiri shawls, warning that such a move could spell the end of the traditional craft. She appealed to Jammu and Kashmir Chief Minister Omar Abdullah to address the issue, accusing the central government of trying to reduce the region’s economic independence by making its people reliant solely on tourism.
“The Kashmiri shawl is renowned worldwide. However, previous decisions, such as the National Conference government’s ban on Shahtoosh, caused significant economic losses. Now, increasing the GST on shawls to 28 percent will effectively kill this art form,” she said.
Jammu and Kashmir People’s Conference (JKPC) president and MLA Handwara, Sajad Lone also strongly opposed the news about increase in GST on handmade Kashmiri shawls, terming it an “oversight” with potentially devastating consequences for artisans and the centuries-old shawl industry.
Lone underscored the cultural and historical significance of the Kashmiri shawl, describing it as more than a mere product. “The Kashmiri shawl embodies our history and serves as an ambassador of our artistry. It provides livelihood to thousands of skilled artisans,” he said.
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