Yamunanagar plywood industry seeks cut in GST from 18% to 5%

The plywood industry in Yamunanagar district has urged the Haryana Government to press for a reduction in GST on plywood from 18 per cent to 5 per cent, arguing that the move will not only boost the economy but also create large-scale employment in the state.

In a letter to Chief Minister Nayab Singh Saini, JK Bihani, president of the Haryana Plywood Manufacturers Association, said it was encouraging that the Group of Ministers (GoM) had proposed elimination of two GST slabs — 12% and 28% — and retention of only two slabs, 5% and 18%.

“Plywood deserves to fall under the 5 per cent slab. Being a member of the GST Council, you (Chief Minister) are requested to push this agenda. Plywood is directly connected with lakhs of farmers irrespective of their states. 60 per cent of our raw material is farm-grown timber,” Bihani wrote.

Highlighting the sector’s contribution to the environment, he said, “Because of plywood factories, a vast number of trees continue to exist on farmland, which improves the environment and fixes carbon.”

Yamunanagar has around 350 plywood factories and nearly 700 peeling, band mill and chipper factories, making it one of the biggest plywood clusters in India. Bihani stressed that the industry not only employs lakhs of unskilled workers but also sustains many allied job activities.

“Plywood is now an essential item for the general public because solid wood furniture has been substituted by plywood. Haryana has been a major plywood manufacturing hub for the past 30 years. A GST reduction will provide a major boost to the economy and employment in the state,” he said.