GST effect: Intellectuals, writers step in to put pressure on Siddaramaiah
, ET Bureau|
Updated: Oct 13, 2017, 09.54 AM IST
BENGALURU: Pressure is building on chief minister Siddaramaiah to intercede with the GST council and the Central government on behalf of rural activists who are demanding removal of taxes on all products manufactured and sold by rural cooperatives.
Top litterateurs and intellectuals in the state, including Jnanpith awardee Girish Karnad and eminent historian Ramachandra Guha, have signed a petition to Siddaramaiah supporting this demand. These litterateurs form part of Siddaramaiah's support-group, particularly on socio-cultural matters. To add further pressure, activist and theatreperson Prasanna has decided to sit on a hunger strike in Bengaluru from Friday .
"The Centre and the GST council took into account the elections in Gujarat and reduced or removed the tax on several items, including khakra.
Karnataka is due for elections early next year. So we think this state will take up the demand for removal of taxes on rural goods, im posed for the first time since Independence, as it is in line with the thinking of the Congress party," an activist who is part of the protest, but declined to be identified, told ET.
Siddaramaiah has received the petition submitted by the litterateurs, but has not made any commitment on the matter. "It is a demand that the Congress party and the CM would, in principle, support. But there are too many exemptions being sought on GST and there is a fear that the purpose of the tax itself would be defeated. There are complications in removing taxes on rural goods, particularly because the definition of what is a handicraft and what exact ly comprises rural goods is unclear.These issues have to be examined before a decision on this matter can be taken," a source close to Siddaramaiah state.
Activists have been holding conventions across the state for the last one month and are sensitivising the rural sector on the impact of GST on their economy.
"The explanation given is that agriculture is not taxed. But rural goods, like pappad or locally made slippers or pots or handloom, supplement the rural economy and help sustain it even when agriculture fails. These are now taxed under GST, impacting the sale prices and the rural livelihood," Prasanna said.
The petition to Siddaramaiah specifically says only the products made by rural cooperatives should be exempt from GST and adds that a blanket ban for rural manufacture is not sought.
Sources in the state government said that if demand for exemption was clearly defined, then the state could consider taking it up in the GST council. The demand for exemption on khadi was raised by Karnataka representative on this council, Krishna Byre Gowda, in the September meeting and this was upheld.
Top litterateurs and intellectuals in the state, including Jnanpith awardee Girish Karnad and eminent historian Ramachandra Guha, have signed a petition to Siddaramaiah supporting this demand. These litterateurs form part of Siddaramaiah's support-group, particularly on socio-cultural matters. To add further pressure, activist and theatreperson Prasanna has decided to sit on a hunger strike in Bengaluru from Friday .
"The Centre and the GST council took into account the elections in Gujarat and reduced or removed the tax on several items, including khakra.
Karnataka is due for elections early next year. So we think this state will take up the demand for removal of taxes on rural goods, im posed for the first time since Independence, as it is in line with the thinking of the Congress party," an activist who is part of the protest, but declined to be identified, told ET.
Siddaramaiah has received the petition submitted by the litterateurs, but has not made any commitment on the matter. "It is a demand that the Congress party and the CM would, in principle, support. But there are too many exemptions being sought on GST and there is a fear that the purpose of the tax itself would be defeated. There are complications in removing taxes on rural goods, particularly because the definition of what is a handicraft and what exact ly comprises rural goods is unclear.These issues have to be examined before a decision on this matter can be taken," a source close to Siddaramaiah state.
Activists have been holding conventions across the state for the last one month and are sensitivising the rural sector on the impact of GST on their economy.
"The explanation given is that agriculture is not taxed. But rural goods, like pappad or locally made slippers or pots or handloom, supplement the rural economy and help sustain it even when agriculture fails. These are now taxed under GST, impacting the sale prices and the rural livelihood," Prasanna said.
The petition to Siddaramaiah specifically says only the products made by rural cooperatives should be exempt from GST and adds that a blanket ban for rural manufacture is not sought.
Sources in the state government said that if demand for exemption was clearly defined, then the state could consider taking it up in the GST council. The demand for exemption on khadi was raised by Karnataka representative on this council, Krishna Byre Gowda, in the September meeting and this was upheld.
