The Erode District Handloom Weavers and Workers’ Union has urged the Central government to exempt handloom products from the Goods and Services Tax (GST) so that the industry could survive.
In a letter to the Prime Minister on Monday, its president M. Varadarajan said that handloom weavers of the cooperative societies are living in the midst of suffering due to job loss. He said that as per the Handlooms (Reservation of Articles for Production), Act 1985, 11 items were reserved for production only in handlooms. However, due to stiff competition from power looms, the handloom products could not be marketed, he added.
The petition said that handloom products could be sold only if rebate of 30% is allowed by the government during certain period. “Until then, produced goods are stocked in godowns”, he added.
The petition said that the industry is already facing threat and is on the verge of closure and the GST has come as a big shock to them. “Implementation of GST will further worsen the situation and hence the government should exempt the handloom products from it”, the petition urged.
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