Kashmir mulls comprehensive package for carpet industry

02 Oct '17

2 min read

The Jammu and Kashmir government is mulling over a comprehensive package to address problems faced by the state’s carpet sector, the state finance minister Haseeb Drabu has said. A delegation of carpet traders and manufacturers recently met him and urged for reducing the 12 per cent tax on carpets under the goods and service tax (GST) regime.

The delegation told the minister that 15 lakh people from 3.5 lakh families involved in the carpet industry will be affected due to the hike in tax as the carpet sector is already in crisis.

A comprehensive package is being considered because the crisis in the state’s carpet sector is much deeper and structural in nature, and not because of GST, Kashmir media reports quoted Drabu as saying.
He said the state government will take up the issue of bringing down GST rate on carpets from existing 12 per cent to 5 per cent in next GST Council meeting.

Drabu later directed the officers from commercial sales tax department to form a committee comprising representatives from the Jammu & Kashmir Bank, carpet associations and the industries department to work out modalities of a comprehensive package for the carpet sector. (DS)

Fibre2Fashion News Desk – India

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