In recent times, a couple of government decisions have hurt sports in all sorts of ways, directly and indirectly. The Goods and Service Tax (GST) bill passed recently is the latest example of it. The government, through the new scheme of the tax structure, has categorised the sports goods industry in the 12-28 % slab.
For the ones who deal in this industry, they feel that sports goods should be listed in the 5 % slab. The difference is going to be huge and the businessmen have every valid reason to be worried and unhappy with it. AS of now, 2 % tax is been charged but the government’s latest circular has increased it to 12 %. The new rules will be implemented from July 1.
Ashutosh Bhalla, director of Vinex Enterprises Pvt Ltd, concedes that the increase in taxation will see the prices of the sports equipment surge considerably. He also criticised that the government is undoing its own initiative of making sports mandatory in schools as a step towards inculcating sports culture as there is no concession given to sports goods, which is a thriving cottage industry.
“All stakeholders should join hands to improve sports awareness in the country,” he told HT over the phone from Meerut. “Sports equipment will become more expensive,” he added.
Rakesh Mahajan, chairman of All India Sports Goods Manufacturers’ Federation, had appealed to the government to support the industry, mainly based in the Meerut region of Uttar Pradesh and Jalandhar in Punjab.
“To make high-quality equipment, we need support from the government. The current move might have a negative impact on the growth of the industry. There are more than 1000 registered units and another 1500 cottage units in villages,” said Mahajan.
Mahajan said high-quality imported javelins, used by the likes of world junior champion Neeraj Chopra, the cost in excess of Rs.1 lakh. But, at the same time, if the same javelins ae manufactured in India, it can be afforded at cheaper rates which can be possible only if the government gives support.
The 2010 Delhi Commonwealth Games discus champion Krishna Poonia says there shouldn’t be any tax on sports goods.
“We should make quality equipment available to youngsters at the grassroots and not when they reach the top. If you start with ordinary equipment, chances are it will have an impact on your technique,” she said.
Shaji Prabhakaran, the former South Asian regional football development officer, said there should be tax relaxation to draw people to come and enjoy sports. “We have to think differently to encourage sports,” he said.