GST Cut Offers Lifeline To Kashmiri Handicrafts Amid Export Slump

Kashmir Crafts1 - The News Today - TNT
Islamabad:  Rising tobacco and nicotine use among Pakistan’s youth, especially around educational institutions, emerged as the central concern at a national review session on tobacco control held by the Aurat Foundation in Islamabad. Participants from Parliament, government departments, health organizations, and civil society warned that easy availability of cigarettes, vapes, nicotine pouches, and flavored tobacco near schools is creating a growing public health threat. The discussion also pointed to a noticeable increase in tobacco use among women, indicating a shifting trend. The session called for stronger legislation, faster policy action, and strict enforcement to counter the rapid spread of emerging nicotine products. Speakers emphasized that existing laws remain poorly implemented due to procedural delays, weak monitoring, and limited coordination between federal and provincial bodies. The need for clear parental awareness, community engagement, and better recognition of new nicotine products was highlighted as an essential part of early prevention. Officials noted that families and schools often remain unaware of modern products marketed to young people. Technical briefings identified major enforcement gaps and policy loopholes that allow the tobacco industry to expand its reach. Participants noted that companies are increasingly using social media trends, entertainment content, and youth-focused marketing to promote vaping in urban areas. Government representatives reaffirmed ongoing federal efforts to implement the Prohibition of Smoking and Protection of Non-Smokers Health Ordinance 2002 and to tighten regulations where required. Provincial representatives also announced plans to introduce new resolutions to strengthen tobacco control. Education sector officials raised alarms over the rise of nicotine products around private institutions and called for tougher regulatory checks. Regulatory authorities stressed the need for a broader social movement to counter tobacco use nationwide. Closing the event, the Aurat Foundation reiterated its commitment to evidence-based advocacy, cross-sector collaboration, and long-term public awareness initiatives aimed at building a healthier, tobacco-free society.

SRINAGAR: At a time when Kashmir’s internationally acclaimed handicraft sector is grappling with falling exports and the menace of machine-made imitations, the Goods and Services Tax (GST) Council’s decision to slash GST on handicrafts from 12 per cent to 5 per cent has come as a rare ray of hope for artisans and traders. The Valley’s artisans, numbering over 3.71 lakh, have described the move as a “lifeline” for a centuries-old craft that has been struggling to survive.

Though artisans were not directly paying GST, dealers and exporters—who buy and market handicrafts—had to deposit 12 percent upfront.

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This blocked their working capital until the products were sold, discouraging bulk purchases and slowing down payments to artisans. With the new GST rate of 5 percent, traders believe liquidity will improve and sales will pick up, ensuring artisans are not left waiting endlessly for dues.

The Directorate of Handicrafts and Handloom Kashmir welcomed the move in a social media post. “A big thank you to #GSTCouncil for REDUCING GST on handicrafts from 12% to 5%. This has come as an elixir for the artisan community who have given their sweat and blood to keep #Kashmir’s craft heritage ALIVE,” the department wrote.

For artisans, the tax cut brings cautious optimism. Ghulam Rasool, a carpet weaver from Budgam, said the reduced levy will have a direct impact on his livelihood. “When dealers had to pay 12 percent GST, they would buy less from us and hold back payments. Now they will be more willing to stock carpets and shawls, which means we might finally see faster returns for our work. This is not just about tax—it is about respect for our craft,” he said.

Another artisan, Muhammad Jaffar, who specialises in papier-mâché, said demand for products had sharply fallen in recent years.

“Middlemen often tell us they cannot afford to keep our work because of high costs and poor sales. If the tax cut helps them buy more, maybe our craft will see revival,” she remarked.

Data paints a worrying picture. Kashmir’s handicraft exports have been steadily declining, dipping to just around Rs 700 crore in the last financial year, compared to over Rs 1,700 crore a decade ago. Rising raw material costs, lack of modern marketing, global recessionary trends, and heavy competition from machine-made substitutes have all combined to shrink the Valley’s once-thriving export sector.

Exporters say price sensitivity is one of the biggest challenges in retaining buyers. “Even a small increase in cost pushes buyers toward alternatives,” said a Srinagar-based exporter, requesting anonymity. “The earlier 12 percent GST made Kashmiri products expensive and uncompetitive. With 5 percent, we can at least quote better prices.”

Adding to the crisis is the flood of machine-made items being passed off as “Kashmiri handicrafts” in domestic and international markets. Machine-embroidered shawls, imitation carpets, and factory-made papier-mâché products are sold cheaply but labeled as Kashmiri, eating into the genuine craft’s market share.

“Customers in Delhi, Mumbai, or even Dubai are often duped into buying power-loom or machine-made goods marketed as Kashmiri handcrafts. This not only robs artisans of income but also destroys the brand value of our heritage,” said Abdul Hamid, a walnut woodcarver from downtown Srinagar.

Read more: South Kashmir Floods Ravage Paddy, Apple Crops

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