Kollam: The introduction of GST on many of tax exempted items under VAT regime and exorbitant increase in new GST rates in existing taxable items will have far-reaching negative consequences for the livelihoods of the fishing community and the marine economy.
The rates are higher when compared to agriculture, dairy, and cashew sectors. Most of the nontaxable items became taxable – fish products, fishing implements like nets, hooks, and ropes - squarely affecting the lives of traditional fishers.
The National Fish Workers Forum has given representation to the GST Council citing the raw deal. “Some of their items are now in the highest tax bracket of 28%, which is meant for luxury items. It means that GST for a BMW and marine engines for fishing are the same now,” T. Peter, NFF general secretary, told DC.
"Fishers spend a major portion of their income annually for replacement of their fishing inputs and the excessive taxation will take away a significant part of their earnings. It is injustice and not conforming to the principles of equity.”
The tractors used in the agricultural sector, which is marine engines to fishers, attract only 12% GST. "Taxing dried fish surprised them as it is the main livelihood of fisherwomen especially elders. It should be compared with the tax reduction allowed for cashew, coir, and dairy products to benefit the women working in these traditional sectors," the representation says.
The Forum wants a reduced 12% tax on marine engines and other navigational devices, 5% on fishing vessels and others entirely exempted. It warned a nation-wide protest if their demands are not met.
