People’s Conference chief Sajad Lone expressed concern on Friday about reports of a proposed tax increase for Kashmiri handicrafts. He said this change would harm the industry.
The Jammu and Kashmir government has already asked the Union Ministry for Commerce and Industry to lower the GST rate from 12% to 5% for these crafts.
Lone, in a post on X, hoped that the increase in GST for shawls was a mistake. He emphasized that handmade Kashmiri shawls are unique and represent the region’s history and artistry. The industry provides jobs for thousands of skilled artisans.
He noted that in today’s world, dominated by machines and AI, skilled hands are rare and valuable. Higher taxes could reduce demand and supply, leading to unemployment for many artisans. Lone urged a return to the lowest GST tax brackets to support this cottage industry.
An official spokesperson stated that the Jammu and Kashmir government is committed to protecting the interests of the handicraft and handloom sector, which supports many artisans’ livelihoods.
In response to media reports about the proposed tax change, the spokesperson clarified that the Jammu and Kashmir government has requested the Union Ministry to lower the GST rate to 5%, even for shawls priced above Rs 1,000. This move aims to reduce the tax burden on the artisan-driven industry and improve its marketability.
The spokesperson described handicrafts as a labor-intensive industry involving 80% of the workforce. Efforts will be made to revive the handicrafts sector, considering competition from global markets and machine-made products.
