Amit Mitra urge Modi to call GST Council to revert tax hike on man-made fibre textiles
Kolkata Dec 26 PTI Former West Bengal finance minister and now advisor to the state Chief Minister Amit Mitra on Sunday urged Prime Minister Narendra Modi to convene an urgent meeting of the GST Council to revert a hike in tax on man-made fibre textiles In a tweet Mitra said Modi Govt will commit another blunder on Jan 1 By raising GST on man-made Textiles from 5 per cent to 12 per cent 15 million jobs will be lost and 1 lakh units will close Modi ji call a GST Council meeting now and reverse decision before sword of Damocles falls falls on the head of millions of people The union government had notified an increase in GST on natural fibre products from 5 per cent to 12 per cent including apparels in the lower tax bracket with effect from January 1 2022 The former finance minister on December 24 at a media meet had urged the Union Finance Minister Nirmala Sitharaman to similarly convene an urgent meeting of the GST Council to rescind the seven per cent tax hike in GST on the textiles sector to prevent job loss and closure of small units If the tax hike is not reversed then the impact will be huge with job loss to 15 lakh 15 million people including those engaged in ancillary industry and closure of one lakh small units A lot of units will revert to the informal sector Mitra had told reporters during the meet However in his tweet put out on Sunday the job loss figure was placed at 15 million The total number of jobs in Indias textile sector is placed at 45 million by the India Brand Equity Foundation a trust founded by the Ministry of Commerce and Industry Mitra had pointed out that the textile trades natural fibre segment constitutes 80 per cent of the Rs 54 lakh crore sector and its net profit margin is between one and three per cent making it vulnerable to any kind of cost increase The cotton sector is already reeling under 70 per cent inflation he had claimed adding that the government estimate of earning an additional Rs 7000 crore from raising the tax is mythical as a lot of units may shut down as a direct consequence of the tax hike He had accused the Centre of not discussing the issue in the GST council before announcing the hike PTI BSM JRC JRC
Kolkata Dec 26 PTI Former West Bengal finance minister and now advisor to the state Chief Minister Amit Mitra on Sunday urged Prime Minister Narendra Modi to convene an urgent meeting of the GST Council to revert a hike in tax on man-made fibre textiles In a tweet Mitra said Modi Govt will commit another blunder on Jan 1 By raising GST on man-made Textiles from 5 per cent to 12 per cent 15 million jobs will be lost and 1 lakh units will close Modi ji call a GST Council meeting now and reverse decision before sword of Damocles falls falls on the head of millions of people The union government had notified an increase in GST on natural fibre products from 5 per cent to 12 per cent including apparels in the lower tax bracket with effect from January 1 2022 The former finance minister on December 24 at a media meet had urged the Union Finance Minister Nirmala Sitharaman to similarly convene an urgent meeting of the GST Council to rescind the seven per cent tax hike in GST on the textiles sector to prevent job loss and closure of small units If the tax hike is not reversed then the impact will be huge with job loss to 15 lakh 15 million people including those engaged in ancillary industry and closure of one lakh small units A lot of units will revert to the informal sector Mitra had told reporters during the meet However in his tweet put out on Sunday the job loss figure was placed at 15 million The total number of jobs in Indias textile sector is placed at 45 million by the India Brand Equity Foundation a trust founded by the Ministry of Commerce and Industry Mitra had pointed out that the textile trades natural fibre segment constitutes 80 per cent of the Rs 54 lakh crore sector and its net profit margin is between one and three per cent making it vulnerable to any kind of cost increase The cotton sector is already reeling under 70 per cent inflation he had claimed adding that the government estimate of earning an additional Rs 7000 crore from raising the tax is mythical as a lot of units may shut down as a direct consequence of the tax hike He had accused the Centre of not discussing the issue in the GST council before announcing the hike PTI BSM JRC JRC
