CHENNAI: Over 2,000 textile outlets in Sowcarpet downed their shutters for the second consecutive day on Wednesday against the Goods and Services Tax (GST), which will come into force on July 1. The first day saw an estimated business loss of Rs 100 crore, claimed traders.
Godown Street in Sowcarpet wore a deserted look with 1,000 shops remaining closed. Likewise, Mint Street, where bulk of wholesale and retail shops are located, also remained shut. Many of the shops in Sowcarpet displayed black flags.
“As a wholesale dealer, we sell materials like cotton. We are being taxed five per cent for cotton and fabric materials. Turkey towels, which we sell, are going to be taxed at 12 per cent. The manufacturers from whom we purchase are from Surat, Ahmedabad and Mumbai. They have shut their businesses for the fifth day in a row against the imposition of the GST. Our counterparts in Salem and Erode have already been observing bandh for the third day. We have decided to shut from today. Along with us, at least 2,000 wholesale dealers from all streets in Sowcarpet shutting down. Our association of 1,250-plus shop members are unanimously against the introduction of the new tax regime,” said K Srinivasalu, secretary of the Madras Piece Goods Merchants Association.
The workers were given paid leave to ensure that they were not burdened, he added.
Srinivasalu said around 45 million people were involved in the textile business and everyone was disappointed. The protesting wholesale merchants association members said they had decided to observe the bandh till June 30, when there is a national bandh called against the GST.
Meanwhile, the wholesale-cum-retail traders in Washermenpet remained open.
A G S Marimuthu, a core committee member of the Madras Washermenpet Cutpiece Cloths Merchants Association, said, “We along with wholesale-cum-retail merchants from Ranganathan Street, Purasavakkam, Pondi Bazaar and Mylapore will most likely go on strike on June 30 to protest the GST. These five areas alone have about 3,000 shops and they will face a turnover loss of at least Rs 70 crore to Rs 80 crore.”