Jaisalmer: Jammu and Kashmir Chief Minister Omar Abdullah expressed his commitment to safeguarding the region’s iconic Pashmina shawl industry during the 55th meeting of the GST Council held in Jaisalmer, Rajasthan on Saturday.
Talking to reporters after the meeting said the primary concern of his administration was to prevent any potential hike in GST rates on shawls, particularly Pashmina, which are a cornerstone of Kashmir’s cultural heritage and economy.
“There had been a lot of speculation that GST on shawls, particularly Pashmina shawls, was going to be hiked. We came prepared to ensure that this wouldn’t happen,” Abdullah said. “Thankfully, it wasn’t taken up in the meeting, and we will work to ensure that such a move is not considered in the future. A tax hike on Pashmina shawls would be life-threatening to this industry.”
The Chief Minister said this was his first GST Council meeting, adding that the discussions were a mix of agreements, deferrals and the formation of ministerial groups to address unresolved issues.
While Omar refrained from comparing this meeting to previous ones, he stressed the importance of protecting Jammu and Kashmir’s traditional industries amid broader policy deliberations.
The speculation over increased taxes from the existing 12 percent to a whopping 28 percent on Kashmiri shawls had caused concern among stakeholders in the valley, who rely heavily on the intricate craft for their livelihoods.
Peoples Democratic Party (PDP) leader, Naeem Akhtar and People’s Conference (PC) chairman Sajad Gani Lone had voiced strong opposition to the proposed Goods and Services Tax (GST) hike on Kashmiri shawls from 12% to 28%, warning that such a move would devastate Kashmir’s fragile economy and leave thousands of artisans in distress.
Earlier on Friday, responding to certain reports appearing in a section of media regarding the proposed revision of tax slab in the upcoming GST Council meeting, a spokesperson of the Jammu and Kashmir government clarified that the UT administration had already taken up the matter with the Union Ministry for Commerce & Industry.
The spokesperson said they have requested the Union government to lower the GST rate structure from the existing 12% to 5% uniformly, including shawls priced above Rs 1,000 to reduce the tax burden on this artisan-driven industry and support marketability
