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14/12/2017 10:53am

Rajasthan handicraft MSMEs appeal tax exemption in pre-budget memorandum

image Rajasthan handicraft MSMEs appeal tax exemption in pre-budget memorandum

New Delhi, Dec 14 (KNN) The handicraft sector comprising primarily of the Micro, Small and Medium Enterprises (MSMEs) is to raise concerns related to the implementation of Goods and Services Tax (GST) on the sector in its pre-budget memorandum to the finance Ministry, Federation of Rajasthan Handicraft Exporters informed.

Talking to KNN, Dileep Baid, President of Federation of Rajasthan Handicraft Exporters (FORHEX) informed that the sector is still grappling under the new taxation, and the memorandum it plans to send to the ministry is to be flooded with concerns of the sector.

Baid said that handicrafts weren’t taxed under the previous taxation, but with the coming of GST, different handicrafts are taxed under the different slabs ranging from 12 per cent to the high 28 per cent.

Baid further said that the memorandum will urge the finance ministry to consider exemption for the sector taking cognizance of the fact that handicraft MSMEs are labour intensive.

Handicrafts provides employment for a major chunk of the population that are either unskilled or less skilled, such high tax rates on this industry is going to reduce the sector to shambles, Baid said.

In line with the problem raised by other sectors, the handicraft exporters too are facing the capital blockage because of which there is an added stress in the sector.

Handicrafts work on minimal budget line and can’t bear the block shock for long, the government must consider simpler refund mechanism, he added. Also the memorandum is to raise increased MEIS rates that got reduced in the GST era, despite the revisions, it still stands less and is hampering exports.

FORHEX is in the process of filing the memorandum and will be submitting it to the finance ministry soon, the association informed. (KNN/ DA)


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