The proposed Goods and Service Tax (GST) hike on Kashmir’s traditional hand-crafted textiles to 28% from the existing 12% has caused fear among the artisans in the valley.

Kashmiri weavers are worried about the Centre’s move as it would badly hit the centuries-old handicraft industry of the valley.

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The GST hike has been recommended by the Group of Ministers on Rate Rationalisation that was chaired by Bihar’s Deputy Chief Minister Samrat Chaudhary. The hike will apply to the textile products, including Kashmiri shawls and crewel items priced above Rs. 10,000. The hike proposal is slated to be discussed in the GST Council meeting on 21 December.

The ruling National Conference (NC) has expressed concern over the proposed increase in GST on traditional Kashmiri products, saying the move has raised alarm within the textile and apparel industry in Kashmir.

Calling on the government of India to reconsider its GST strategy to safeguard the industry and the livelihood it sustains, NC’s chief spokesperson and MLA Tanvir Sadiq emphasised that these products serve as the backbone of Kashmir’s economy and cultural heritage.

“The increase in GST rates will place a heavy burden on local artisans and traders, jeopardizing their livelihood and reducing the attractiveness of Kashmiri products in the global market. It is alarming to propose higher taxes during a period of economic instability characterized by inflation and stagnant growth,” he said.

Tanvir criticised the proposed hike, stating that it reflects a lack of understanding of Kashmir’s economic realities. He emphasised the importance of balancing revenue needs with social equity for the workforce, warning of severe consequences if this balance is not maintained.

He urged the government to reconsider the hike in order to protect the interests of the Kashmir handicrafts industry.

J&K Apni Party chief, Altaf Bukhari also warned that the proposed GST hike up to 28% on textiles, if implemented, would severely affect the livelihood of poor artisans, especially those who weave shawls, crewel, and other traditional textiles in the Kashmir Valley.

“I strongly urge the Union Government not to accept or implement the proposed GST hike in the larger interests of the artisans”, he added.

Meanwhile, the Kashmir Chamber of Commerce and Industry (KCCI) has flagged to Prime Minister Narendra Modi, Lt.Governor Manoj Sinha and Chief Minister Omar Abdullah the disastrous effect the hike will cause.

Over 2.50 lakh artisans, many of whom are women and members of marginalised population, are directly or indirectly employed in the textile and handicrafts industry, which is a vital part of the region’s economic and cultural identity.

The KCCI has asked the government to lower the existing GST rate to 5% in view of the current economic crisis in the valley.