Furniture dealers on warpath

New tax regime will cripple the sector, says association

June 28, 2017 10:50 am | Updated 10:50 am IST - VIJAYAWADA

Furniture shops remained closed during the protest against GST in Vijayawada on Tuesday.

Furniture shops remained closed during the protest against GST in Vijayawada on Tuesday.

Furniture showrooms across the State continued to remain closed for the second day on Tuesday, responding to the three-day bandh call given by the All India Furniture Trade Federation.

The dealers were protesting against GST on furniture under which tax on furniture will go up from 14.5% to 28%.

At a rally organised here on Monday, Rajeev Arora, president of the Furniture Dealers Association, Vijayawada, said furniture industry in India was in the unorganised sector and 95% of it was under small scale and cottage industry sector, providing lakhs of people with jobs.

Loss of livelihood

Furniture was not a luxury and the proposed 28% tax under GST would result in the loss of livelihood for unqualified people engaged in this sector, he said. “The small scale industry of India will be at great risk. Also, it will have a negative impact on the Prime Minister’s Make In India campaign,” he said. The association had sent a mail to the Prime Minister and the Union Finance Minister highlighting the concerns of the furniture industry. As there was no response, the industry had to call for a bandh, he said. “If no action is taken even after this bandh, we will intensify the agitation,” he said.

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