Weaving and knitting factories in Karur on Thursday downed shutters, protesting against the move to levy Goods and Services Tax (GST) on multiple production processes of the industry.
About 500 weaving and knitting units and more than 1,500 dyeing and packing units, situated in different parts of Karur and neighbouring towns, took part in the day-long strike that began in the morning.
According to industry sources, about 50,000 workers, yarn merchants and traders abstained from work in support of the strike called by six associations including Karur Weaving and Knitting Factory Owners’ Association.
S. Surendhar, secretary, Karur Weaving and Knitting Factory Owners’ Association, said that the GST tax proposals would badly hit the textile units and micro, medium and small enterprises. While cotton yarn would attract 5 % GST, synthetic yarn would be levied with 18% tax. Besides GST has been proposed on various processes of production including dyeing, bleaching, colouring and packing.
He said that there was currently no tax on powerloom products and job works. Successive governments had exempted powerloom products from tax mainly to protect lakhs of people, who were directly and indirectly involved in the industry. The proposed multilayer tax proposals would make a severe dent on the industry here. Mr. Surendhar said though the industry associations have sent a number of representations to the State and Central governments to exempt powerlooms from the ambit of GST, their demand has not been accepted so far.
