‘Exempt handloom, powerloom sectors’

Jayakumar also reiterates demand to reduce GST rate on fireworks industry

State Finance Minister D. Jayakumar on Sunday urged the Union Finance Minister to exempt the handloom and powerloom industries from the Goods and Services Tax (GST) and reduce the taxation on the fireworks industry.

Speaking at the GST Conclave attended by Union Finance Minister Arun Jaitley and Union Minister of State for Commerce and Industry Nirmala Sitharaman, Mr. Jayakumar reiterated the Tamil Nadu government’s plea to exempt the State from the National Eligibility cum Entrance Test for medical admissions.

‘Labour-intensive’

Workers involved in the handloom and powerloom industries were from the lower strata of the society, and hence, they should be exempted from the GST, he contended and added that the Tamil Nadu government was providing free electricity to these sectors to support them.

Firework and match industries were “labour-intensive” and about 8 lakh people in the State were involved in them, Mr. Jayakumar said, and added of the 1,221 firework units, 1,170 were small-scale units. Taxation to the tune of 28% had dealt the sector a heavy blow and had opened the doors for clandestine import of fireworks, he argued.

About 93% of the tax payers in the State had successfully migrated to the GST regime, and among dealers with turnover above 20 lakh, it was almost 98%, the Finance Minister said and expressed confidence that it would reach 100% soon.

Mr. Jayakumar also urged the Union Finance Minister to expedite funding for the second phase of the Chennai Metro, the desalination project, the peripheral ring road project and the Chennai-Kanniyakumari Industrial Corridor Project. He also reiterated the State’s request to expedite payments to the tune of 17,000 crore outstanding on various Central schemes.

Earlier in the day, Mr. Jayakumar accompanied Mr. Jaitley and Ms. Sitharaman during a visit to former Chief Minister Jayalalithaa’s memorial on the Marina beach to pay homage to the late leader.

Source: http://www.thehindu.com/news/national/tamil-nadu/exempt-handloom-powerloom-sectors/article19392291.ece