A welcome relief for Kashmir’s shawl artisans, traders

Ziraat Times Editorial Board

The decision by the GST Council in its December 22, 2024 meeting to not hike the Goods and Services Tax (GST) on Kashmiri shawls is a much-needed respite for the artisans, traders, and the broader handicrafts and handloom industry of Kashmir.

Artisans and business chambers have rightly emphasised that Kashmiri shawls, including the famed Pashmina, are more than just luxury items. They embody centuries of craftsmanship and are a cultural emblem of Kashmir. Behind every shawl is the labor of skilled artisans, often from marginalized communities, whose livelihoods depend on this intricate craft. A proposed hike in GST from 12% to 28% would have been catastrophic, pushing these artisans into deeper financial distress while jeopardizing the industry’s competitiveness in both national and international markets.

The KCCI, along with other trade bodies like the PHDCCI Kashmir Chapter, have lobbied strongly in advocating against this proposed hike. Their proactive steps through representations to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Lieutenant Governor Manoj Sinha, and Chief Minister Omar Abdullah have helped  in not putting the GST hike proposal on the GST Council’s agenda. Opposition Peoples Democratic Party has also strongly raised its voice calling for safegauring the sector from a potential high tax hike..The Chief Minister Omar Abdullah’s representation of Jammu & Kashmir at the GST Council meeting and prompt social media posts further ensured that the concerns of the region were heard at the highest level.

Categorizing Kashmiri shawls under a higher tax bracket akin to a “sin tax” would have been a misstep with far-reaching consequences. Not only would it have hindered sales, but it also risked alienating consumers who might turn to cheaper, machine-made imitations. This would have further eroded the livelihoods of over 300,000 artisans who rely on this sector.

The GST Council’s decision to leave the tax rate unchanged acknowledges the need to protect this important source of livelihood and the cultural and economic significance of Kashmiri shawls.

While this decision brings relief, it is imperative for the government to go a step further. Policies that support artisan welfare, stricter enforcement against counterfeit products, and robust marketing initiatives to promote genuine Kashmiri shawls globally are needed.

While Kashmir has lauded GST Council decision-makers for their considerate approach, there are hopes that future GST Council meetings will continue to safeguard the interests of Kashmir’s handicrafts and handloom sector.