[Reader-list] Fishers fume at GST rates

[T Peter]

*Fishers fume at GST rates*

T. Nandakumar <http://www.thehindu.com/profile/author/T.-Nandakumar-576/>

http://www.thehindu.com/todays-paper/tp-national/tp-
kerala/fishers-fume-at-gst-rates/article19238286.ece



*They dread further increase in operational costs*

The fisheries sector is bracing itself to face a fresh crisis triggered by
the high tax rates on fishing gear under the GST (Goods Services Tax)
regime.Fishing hooks, fishing rods, fishing tackles, and fishing twines are
taxable at 12% under GST while that on fishing ropes has been fixed at 18%.
All these fishing gear were exempt from tax under the VAT regime.The GST
rate for fishing vessels has been fixed at 5%, the same rate levied under
VAT. Outboard motors and ice boxes that had a VAT rate of 14.5% now attract
a GST of 28% and 18% respectively.Anticipating a spurt in input costs, tens
of thousands of fishermen who belong to the traditional and mechanised
sectors are gearing up for an agitation against the crisis brewing in the
sector.

“This tax burden has come like a bolt from the blue,” says T. Peter,
secretary, National Fishworkers Forum (NFF). “It is unaffordable, coming as
it does at a time when dwindling returns from the industry are forcing
desperate fishermen to seek other livelihood means.”

‘Caught unawares’

Leaders of most organisations representing fish workers admit that they had
been caught unawares by the increase in tax rates. “The 12% GST on twine is
bound to push up the price of fishing nets, one of the basic equipment used
by fishers,” says Mr. Peter.

Joseph Xavier Kalappurackal, general secretary, All Kerala Fishing Boat
Operators’ Association (AKFBOA), fears that the new tax rates will unleash
a spurt in the price of all the goods used in the fisheries sector. “It is
a big blow with the potential to affect exports and cripple the whole
sector.” He feels that the situation could have been averted if the
government had consulted the stakeholders in the sector before deciding on
the tax rates.

Vulnerable section

Already driven to the wall by rising fuel prices, dwindling fish stocks,
and exploitation by middlemen, fisherfolk dread the prospect of a further
increase in operational costs. “The government has abdicated its
responsibility to protect one of the most vulnerable sections of society,”
Mr. Joseph says.

The NFF and AKFBOA are planning to submit a memorandum seeking reduction in
GST rates.