GST Rationalisation: Cultivating Growth and Prosperity in Mizoram
The article details how the recent Goods and Services Tax (GST) rate rationalisation, primarily featuring cuts from 12% to 5% on local products, is set to boost Mizoram’s economy by improving affordability, market access, and supporting traditional livelihoods.
Key Sectoral Gains from Rate Reductions
- Handicrafts and Handlooms (12% to 5%):
- The GST reduction makes traditional products like Puan (Mizo shawls and fabrics) and various locally crafted items approximately 6–7% cheaper for consumers.
- This directly aids the estimated 2.5 lakh artisans and weavers by increasing the competitiveness of their products in both domestic and regional markets.
- The lower rates support local weaving cooperatives and self-help groups (SHGs), securing a stable income source for rural and tribal women.
- Agro-Processing and Horticulture (12% to 5%):
- The tax cut on locally processed food items like ginger, turmeric, and bamboo shoot pickles (value-added products) reduces retail prices, encouraging higher consumption.
- This supports the state’s horticultural sector and numerous small food processing MSMEs, improving profitability and market demand for local produce.
- Bamboo and Cane Products (12% to 5%):
- Products made from bamboo and cane—which are central to the tribal economy—benefit from the reduced GST rate.
- This stimulates demand for locally produced goods, thereby helping to sustain the state’s vital cottage industries and conservation efforts.
Economic Impact
The reforms are expected to lead to increased affordability for the common consumer and improved profit margins for MSMEs. By making local products more competitive against imported goods, the GST cuts reinforce the government’s objective of achieving inclusive economic growth and promoting local enterprise.
Source :- GST-Rationalistaion-Cultivating-Growth-Crafting-Prosperity-in-Mizoram