APPEAL TO DECLASSIFY FURNITURE FROM LUXURY TAX SLAB UNDER GST
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UNITY BRINGS GROWTH ENCOMPASSING ALL
Points Of appeal
· Furniture is a basic necessity and not a luxury. It is the following sector to the housing industry. It contributes 0.5% of the GDP and is likely to increase to 2% of the GDP by 2050 matching to the developed countries.
· The segment is primarily dominated by the unorganised sector (approx. 85%) while organised sector constitutes a small portion.
· The home furniture is the largest segment in the furniture market accounting for about 65% of sales. The office furniture accounts for about 20% followed by others mainly contract segment accounts for a share of 15%.
· The Housing sector is encouraged with various subsidies and tax breaks , but a House cannot be a Home without essential living facilities like Furniture , Taxes at the highest level will discourage family to pursue buying from accountable channels in the industry.
· Wood furniture has approx. 50% share, followed by metal about 25% and others
·Majority of wood sector companies fall under micro and small segment. 45% of market accounts for micro companies followed by small size companies at 30%. Medium and large companies account for 20% and 5% respectively
· 85% of the industry is under unorganised sector with carpenters working on the site.
· High taxes @28% which is at par to customs duty will impact the local livelihood
· It is a big employment generator supporting the traditionally backward classes this comprises of Suthar Samaaj, Jangid Samaj, Vishwakarma Samaaj, Gujaar Samaaj, who contribute in handicrafts industry, cottage industry and exports of furniture .
· The modular industry is at a very nascent stage and the requisite skilled labour are in short supply thus encouraging imports .
· With fair GST rate at 18% The product will be Competitive and affordable to Common Man and will enhance the furniture sector to compete cheap Imports.
We request the GST Committee and all decision makers to support our plea to help the sector survive and thrive.
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