MADURAI: The Tamil Nadu Chamber of Commerce and Industry has today made an appeal to the GST Council to drop the proposed tax rate increase on various products in the interests of poor and middle class, trade and industry and the general public.
In a press statement issued from Madurai on 25th April 2022, TN Chamber president Mr.N.Jegatheesan has urged the Tamil Nadu government to oppose the GST Council’s proposal to hike tax rates on about 143 products
“GST tax revenues have been increasing every month for the past six months; It is to be noted that in March 2022, GST revenues has increased to a maximum of Rs 1.42 lakh crore. In this situation, the GST Council have proposed to hike the tax rates of papad, jaggery, etc., which are currently taxed at 0 per cent, to 5 percent and for leather clothes, watches, shave razors, perfumes, items used before/after shaving, chocolates, wafers, cocoa powder, non-alcoholic beverages, handbags, shopping bags, ceramic sinks, wash basins, etc from 18% to 28% and for walnuts from 5 per cent to 12 percent and for custard powder from 5 percent to 18 percent. In all, about 92 of the 143 products are proposed to be hiked from 18 percent to 28 percent tax rate. Our chamber appeals to the GST Council and Government of India to drop the tax rate hike proposal,” Mr.Jegatheesan has said the press release.
He pointed out that in the aftermath of the Corona virus pandemic, the trade and industrial sector especially the micro, small and medium enterprises (MSMEs), have now recovered a bit amidst great difficulty. “Trade and industry and the general public have already been hit hard by 14.5 per cent of Wholesale Price Inflation and 7.5 per cent of Retail Price
Inflation. If the GST rate is increased again at this stage, the trade and industrial sector will further be mostly affected; While the common man is already reeling under the impact of the exorbitant rise in prices of daily-consuming products including essential commodities and all other commodities like petrol, diesel and cooking gas, the imposition of additional GST tax rate hike on products will further affect them,” the TN Chamber president added.
