VISAKHAPATNAM: The GST is taking a toll on the fish production in Visakhapatnam. The mechanised fishing boat association members say that now the fishing nets and ropes attract 10 per cent GST, while it is 12 per cent for dry fish which is not the case in the pre-GST regime. Further, many fishermen have stopped going for fishing as they do not have GST registration number, which will affect the overall catch at the Vizag fishing harbour on a long run, they say.
After the fishermen faced hardships during the recent 61-day annual fishing ban, the GST is adding to their woes. They say that GST on dry fish and fishing equipment is a big burden. “There was zero tax on ropes and nets, now the equipment attracts 10 per cent tax. Many boats stay anchored at the harbour as they have no GST registration numbers. With no PAN cards and education qualification, how is it possible for fishermen to continue?,” said Appa Rao, president of AP Mechanised Fishing Boat Operators Welfare Association. The Vizag fishing harbour exports 6 to 7 tonnes of dry fish per day.
“The 12 per cent tax on dry fish is a huge burden. The GST will increase the cost price of fish and we are being forced to pass on the burden to the consumers which means increase in the selling price. We will go on a strike if the issue is not resolved,” says Appa Rao, the president of AP Mechanised Fishing Boat Operators Welfare Association.
Further, most of the fishermen being illiterate, they have no idea of the GST. “The fishermen are affected because they get profit from dry fish stock. They soak the fish in salt, clean them and dry them for two days. Each boat has around eight fishermen who have to share the profit of around Rs 10,000-20,000 of 15 days. Now, the tax burden is eating into the profits,” says D Ganga Raju, of Visakha Dolphin Boat Operators Welfare Association.
About 12-15 tonnes of dry fish is readied in every 15 days at the Vizag harbour. On an average, 60-70 tonnes of dry fish are sold in the market and exported to Assam, Odisha, Bengal and Kerala.
“A rickshaw load of dry fish costs around Rs 2,000 and the price may decrease if there are more boats. So we do not have any clear idea of how the GST will work on the fishing industry, whether the burden would be on buyer, middlemen or procured person,” Ganga Raju told Express.