Jalandhar, July 4
In a press conference held here today, members of the Jalandhar Rubber Goods Manufacturers’ Association said the district used to have 400 hawai chappal manufacturing MSME units around seven years ago, but now, due to the alleged non-cooperative attitude of the government, about 325 of these units had been closed down.
The industrialists expressed their disappointment with the Centre for not listening to their demands for a long time and requested to decrease the GST on their products.
The industrialists blamed the increase in GST from 5 per cent to 12 per cent for the closure of units. “When GST was introduced on July 1 in 2017, there were a lot of discussions and an in-depth study was done for the proper rate of GST on various items being used by different segments of the society. It was decided that footwear and textiles below the price of Rs 1,000 will be put under a 5% GST slab,” said Rakesh Behal, secretary of the association.
“Later, the uncalled-for hike of 7% GST has adversely affected the demand and supply of low-cost hawai chappal across the country,” he added.
Senior industrialist Gursharan Singh said the government must make efforts to revive the state’s industry, which he said is on a ventilator. “Earlier, rate of VAT on these products was either zero in most of the states or 0.5 per cent in some of the states, so 12% GST on low-cost hawai chappal mainly used by people from financially poor sections is not at all justified,” he added.
Before the recently held Jalandhar Lok Sabha bypoll, the traders had also asked AAP supremo Kejriwal to take up the matter with the Centre.
‘Tax rate exorbitant, not justified’
Senior industrialist Gursharan Singh said the government must make efforts to revive the state’s industry, which he said is on a ventilator. “Earlier, rate of VAT on these products was either zero in most of the states or 0.5 per cent in some of the states, so 12% GST on low-cost hawai chappal mainly used by people from financially poor sections is exorbitant and not at all justified,” he added.
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