Delhi Deputy Chief Minister Manish Sisodia said the Delhi Government will protest against the proposed tax hike on textiles.
"The government won't let the common man's voice be suppressed," Sisodia said.
He stated that the textile traders are opposing the increase in Goods and Services Tax (GST) rates from 5 per cent to 12 per cent and their demands are justified, so the Aam Aadmi Party (AAP) Government shall take them forward.
In a statement, Sisodia further said that the Delhi Government under the leadership of Delhi Chief Minister and AAP convenor Arvind Kejriwal has always been in favour of keeping tax rates low. "I will raise the demand to withdraw the increased tax on textiles in GST council meeting on December 31. The Central Government should wake up and take note of the backbreaking inflation; they can't rub salt on the wounds of the poor like this,'' he said.
He added that the businesses of small traders will die a slow death if taxes on clothes increase. "Despite the backbreaking inflation in the country, the Central Government has proposed a humongous tax hike on textiles under the new GST regime. The Centre has proposed to shoot up GST rates to 12 per cent from the current rates of 5 per cent in a complete disregard of the common man's woes,'' he said.
Notably, the GST Council had made certain recommendations for revision in GST rate, mostly to correct inverted duty structure and other anomalies. This includes revision of rates in the textiles sector which shall come into effect from the January 1, 2022. Currently, a 5 per cent tax on sales up to Rs 1,000 per piece is charged.
The recommendation of the GST Council to increase the GST rates on textiles from 5 per cent to 12 per cent, shall impact a large number of small traders dealing in the textile sector as well as the consumers who will be forced to pay exorbitant rates if the regime is implemented. People in the textile sector argued that such a decision may create a negative impact resulting in drop in demand and recession.
( With inputs from ANI )
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