KHAGA appeals to Nirmala Sitharaman to reject GST hike for textile industry
By DHEERAJ GUPTA 2025-01-21 13:27:53
KHAGA urges Nirmala Sitharaman to oppose the textile industry's GST hike.
The Karnataka Household and Garment Association (KHAGA) has written to Union Finance Minister Nirmala Sitharaman to urge her to abandon the idea in response to news that the Goods and Services Tax (GST) rates for the apparel and textile industry may be revised.
The local apparel and textile industry’s trade group, KHAGA, emphasised the revision’s potential economic and social effects on pricing, manufacturing, and consumer demand.
The association expressed worries about the possible loss of jobs in the industry in the event that GST rates are hiked. According to KHAGA, any tax increase would increase the financial strain currently experienced by the garment and textile sector, which employs a sizable number of unskilled and semi-skilled workers, many of whom are women, endangering many livelihoods.
KHAGA president Prakash Bhojani stated that if ethnic garments, typically bought for weddings and celebrations, are categorised under luxury tax, they will become unaffordable for many. He added that this could reduce consumption during cultural and festive occasions, ultimately slowing down the economy.
Additionally, the group said that changing the GST rates would drive firms and consumers to unofficial marketplaces. While illegitimate merchants would profit from this change, respectable retailers would suffer.
