Namakkal District Powerloom Weavers To Stage One-Day Shutdown Over Taxation Concerns

ENA Sectors 2024-02-28 14:59:46 Namakkal, Feb 28 (KNN) Namakkal district's powerloom weavers are gearing up for a one-day shutdown on Wednesday, pressing for the withdrawal of the contentious 43B(H) clause imposed by the central government in the MSME sector, reported TOI. This move comes amidst growing discontent over the tax burden faced by small-scale powerloom businesses. According to K Arumugam, the president of the Tiruchengode Union Small Powerloom Owners Association, the primary bone of contention is the imposition of a 30 per cent income tax on weaving materials purchased on credit exceeding 45 days. Arumugam emphasized that a significant portion of purchases in the industry are made on credit periods extending beyond 50 days. The enforcement of this new income tax regulation is perceived as a severe blow to the already struggling powerloom sector. The introduction of this tax regime threatens to undermine the very foundations of our industry, Arumugam lamented, citing a reluctance among purchasers to procure materials due to the additional financial burden. He pointed out that many purchasers have opted to refrain from buying clothes altogether in response to the new tax policy. The central government's plan to implement this taxation framework from the upcoming assessment year 2024-25 has sparked widespread concern among the powerloom community. With over 50,000 powerloom unit owners expected to join the strike, the association anticipates a significant disruption to operations across Namakkal district. The powerloom industry, known for its role in providing employment opportunities and sustaining local economies, now finds itself at a critical juncture, urging policymakers to reconsider their approach to taxation within the MSME sector. As the standoff between the government and powerloom weavers intensifies, stakeholders await a resolution that balances the need for revenue generation with the preservation of a vital sector essential for the socioeconomic fabric of Namakkal district. (KNN Bureau) 36857 https://knnindia.co.in/news/newsdetails/sectors/namakkal-district-powerloom-weavers-to-stage-one-day-shutdown-over-taxation-concerns 2024-02-28 14:59:46 knnindia.co.in Namakkal District Powerloom Weavers To Stage One-Day Shutdown Over Taxation Concerns