BENGALURU: The recently proposed Goods and Services Tax (GST) of 12 per cent on puja-related items, which didn’t attract any tax earlier, could hit the agarbatti manufacturers hard, impacting prices and affecting employment.
The All India Agarbathi Manufacturers’ Association (AIAMA) on Wednesday resented the move, stating that the proposed tax would affect the common man and the agarbatti industry. The association has submitted a memorandum to the Finance Minister to revise the rates.
According to Sarath Babu, president of AIAMA, the value-added tax and excise on agarbathis in most states is currently zero per cent with some states levying a five per cent sales tax on it.
“Agarbatti is a product that is used for prayer at home and religious places by the common man. Hence, the 12 per cent GST rate is inconceivable.
Also, the industry is labour-intensive. Therefore, if the sector cannot be exempted from the GST, we ask for the minimum rate of 5 per cent at the most, for the betterment and growth of the industry,” said Babu.
If the government goes ahead with the proposed tax slab for puja-related products, there would be no choice but to increase the prices of the incense sticks, he added. This will have a direct impact on the demand and will indirectly affect several livelihoods.
Expressing surprise at the move, the members of the association said lakhs of labourers working in this sector face the risk of losing their jobs.