Handicrafts corp of K'taka wants sales tax reduced

BANGALORE: Even as the Karnataka chief minister SM Krishna is busy giving the final touches to the state’s ’03-04 Budget, the state-owned Karnataka State Handicrafts Development Corporation (KSHDC) has taken up the cause of artisans.
The KSHDC, with over 5,500 artisans registered on its rolls in various crafts like sandalwood, rosewood, bidriware, lacquerware, potteryware, carpet weaving, kinhal toys, kasuthi, metalware, batik, mirror and embroidery, has urged the chief minister to ensure adequate supply of sandalwood at concessional rates and offer tax concessions to handicrafts.
According to KSHDC chairperson NS Ratna Prabha, handicrafts are granted total sales tax exemption in neighbouring Andhra Pradesh, while Karnataka was levying an exorbitant 12% sales tax. Other neighbouring states like Kerala and Tamil Nadu were levying 4% and 5% sales tax , respectively, she said and pleaded for a similar concession to the state’s artisans. Though Karnataka is famous for its sandalwood idols, carvings and other handicraft items, scarcity of raw material and high prices were making the lives of artisans increasingly difficult. The total requirements of the 1,000-odd sandalwood craftsmen was around 100 tonnes a year, but the KSHDC is able to meet barely 10% of the demand.
Ms Prabha has asked the government to direct the forest department to distribute at least 50 tonnes of sandalwood at the current basic price of Rs 3 lakh per tonne for a minimum period of five years to the KSHDC and provide an annual grant of Rs 50 lakh. The KSHDC, which had suffered a loss of Rs 38 lakh during ’97-98 despite achieving a turnover of Rs 14.5 crore, had increased its turnover to Rs 23.4 crore and cut its losses to Rs 10.7 crore during ’01-02.
The turnover is expected to touch Rs 33 crore this year, Ms Prabha said.