The Punjab Textile Merchant Association has asked Punjab Finance Minister Harpal Singh Cheema to counter-urged amendments to the Goods and Services Tax (GST) on garments at the forthcoming 55th GST Council meeting.
The association members in a letter to Cheema emphasized their concerns towards the surge in GST rates. The proposals comprise of raising the GST to 18% from 12% on the garments cost between Rs 1,500 and Rs 10,000 and levying a 28% GST on garments costs exceeding Rs 10,000. The traders are already informed about the measures that shall impact the strained garment sector at present.
In a letter it cited that “As the Finance Minister of Punjab and a member of the GST Council, your role is crucial in safeguarding the interests of industries and workers in the state.”
It was claimed by the association that the rise in the GST to 18% for mid-range garments shall make them cheaper for middle-income consumers leading to a lessening in demand and slower sales. The proposed 28% GST on high-end garments shall decrease the premium market, discouraging purchases and putting businesses into economic problems.
The garment industry relied on the small and medium enterprises (SMEs) functions on lower profit margins. The businesses would struggle to absorb the surged tax load that resulted in closures and substantial job losses as per the association members.
The traders asked FM Cheema to advocate for the requirements of the industry and ensure that policies assist its development instead of worsening its challenges. They highlighted that the suggested increases in the Goods and Services Tax (GST) could harm the industry’s role in supporting Punjab’s economy and job creation.
Such proposals are likely to be addressed by the forthcoming GST Council meeting and the industry stakeholders await its consequences with concern.
