Over 7,000 power looms will down shutters for three days from Tuesday protesting against what the power loom cloth manufacturers call as multiple and cumbersome taxation policy under the Goods and Service Tax.
The secretary of Aruppukottai Small Power Loom Clothe Manufacturer’s Association, V. Arivanantham, said that the power loom and cloth manufactures run their units as small scale industry.
“Most of the power looms in Aruppukottai and surrounding areas like Palayampatti, Kalkurichi and Semmpatti are dependent on free power provided by the State Government. This is our economic condition. But, given the rules of GST, we will be forced to buy computers and printers for uploading various information on a daily basis,” he said.
Stating that the power looms are not run in factories, but in houses, he said that every house has a maximum of three power looms. “We live either in the first floor over the building housing the power looms or in many cases the family members live amidst the power loom. Such is the condition for most of us,” Mr. Arivanantham said.
Every process taxed
Under the Goods and Service Tax, every process from the yarn becoming a saree – like dying, twisting, warping, printing – is taxed.
“And for every process, we are forced to make documents and upload it on a daily basis.
Given the nature of our work, each process is done at different places within a two-km radius. If we fail to upload the documents, we are liable for a fine of ₹100 a day that could go up to ₹5,000,” he said.
He feared that power loom owners will be forced to get another power connection if they have to install computers at every house.
The apprehension of the weavers and cloth manufacturers is that the new tax regime will only lead to licence raj where officials can dictate terms with them even if yarn is being taken out to the next street.
