FATIA urges GST 2.0 revisions, seeks industrial growth initiatives for Erode

Mr. Jindal
3 Min Read

V.K. Rajamanaickam (left), president of the Federation of All Industrial and Trade Associations of Erode district, submitted a petition to BJP State president Nainar Nagendran in Erode in Tamil Nadu on Monday.

V.K. Rajamanaickam (left), president of the Federation of All Industrial and Trade Associations of Erode district, submitted a petition to BJP State president Nainar Nagendran in Erode in Tamil Nadu on Monday.
| Photo Credit: Govarthan M.

The Federation of All Industrial and Trade Associations (FATIA) of Erode District has urged the Central government to introduce certain revisions in the GST 2.0 tax structure for specific goods. The federation also sought measures to promote industrial growth in Tamil Nadu, development of industries in Erode, and improvement of the city’s infrastructure.

The first executive committee meeting of the federation, chaired by its president V.K. Rajamanickam, was held here on Monday evening, with BJP State president and MLA Nainar Nagendran attending as the special guest.

In a petition submitted to Mr. Nagendran, the members urged the Union Finance Ministry and the GST Council to exempt traditional South Indian food items such as idli and dosa from GST, similar to the exemption extended to North Indian foods like chapati and parotta. They also sought the removal of GST on grain bags below 25 kg, saying it imposed a financial burden on poorer consumers.

While thanking the Centre for rolling out GST 2.0 and reducing tax on polyester staple fibre from 18% to 5%, the federation demanded a similar rate for products made from the fibre, including pillows and mattresses. FATIA also called for a uniform GST exemption on all types of paper and relief for printing, packaging, and advertising services currently taxed at 18%.

Objecting to the collection of professional and trade licence taxes from GST-registered businesses, FATIA said it violated the “One Nation, One Tax” principle. The federation urged the State government to withdraw the steep property tax hike and cancel the newly imposed trade licence fee on small traders.

Among other demands, FATIA sought interest-free loans and export subsidies for textile exporters affected by new U.S. import penalties, abolition of the agricultural cess, reduction in power tariffs, and incentives for solar energy generation.

The federation also appealed for the establishment of a trade centre, a textile technology institute, and an ESI hospital in Erode. It further called for the revival of the Erode–Ramanathapuram treated water discharge project and speedy completion of the Thindal flyover.

Modakkurichi MLA C. Saraswati, BJP functionaries, and federation members were present.

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