KPO opposes proposed 28% GST on Kashmiri shawls

Srinagar, Dec 5: The Kashmir Pashmina Organisation (KPO) has launched a forceful protest against the proposed 28% Goods and Services Tax (GST) on textiles, warning of potentially catastrophic consequences for Kashmir’s centuries-old shawl-making tradition.

KPO President Mubashir Shaw has written a formal letter to Chief Minister Omar Abdullah seeking urgent intervention against the proposed tax hike. In the letter, he detailed the potential economic devastation facing Pashmina artisans.

Musadiq Shah, Senior vice president of KPO, delivered a passionate critique of the GST Council’s recommendation. “This proposed tax hike is an economic death sentence for our artisans,” Shah emphasized. “Kashmiri shawls are intricate works of art representing generations of craftsmanship. Most of our premium shawls are priced above Rs 10,000, and this arbitrary GST increase will decimate an already fragile industry.”

Shah highlighted the broader implications, noting that the industry supports over 2.5 lakh artisans directly, with countless others indirectly dependent on this craft. Currently taxed at 12%, the proposed 28% rate threatens to render the exquisite handwork economically unviable and potentially force thousands into unemployment.

The organisation has called upon Omar Abdullah to intervene, urging him to represent Pashmina artisans’ interests at the GST Council and engage with Finance Minister Nirmala Sitharaman to maintain a reasonable tax rate.

The proposed GST hike is set to be discussed at the 55th GST Council meeting on December 21, 2024. The KPO emphasises that over 2,50,000 artisans, including many skilled women, depend on this delicate, labor-intensive craft that is deeply intertwined with Kashmir’s cultural heritage.