Business Standstill in Tiruppur as Traders Protest GST and Property Tax Hikes
TIRUPPUR: Business activity ground to a halt in Tiruppur district as traders, shop owners, and industrial units participated in a bandh on Wednesday, closing their establishments from 6 am to 6 pm. The protest was aimed at condemning the union government’s decision to impose an 18% GST on rent for commercial buildings and the state government’s recent increase in property tax.
The All Trader’s Federation reported that approximately one lakh shops across the district remained closed, resulting in an estimated loss of Rs 100 crore in trade due to the shutdown. Most shops, hotels, small business establishments, and commercial entities in the city and its suburbs were shuttered. The Khaderpet area, known as the hub for the knitwear trade in Tiruppur, was notably deserted, and around 300 vegetable shops were also closed for the day.
The Tiruppur Exporters and Manufacturers Association (TEAMA) endorsed the bandh, and all members refrained from operating their factories. KGM Duraisamy, the president of the All Traders and Small Business Associations Federation, voiced concerns about the implications of the new taxes. The central government has imposed 18% GST on rent for commercial buildings. This will lead to increased rental costs, which will in turn affect most shops and small businesses that operate out of rented premises. Consequently, they will pass on these price increases to consumers,” he stated.
Furthermore, Duraisamy criticized the drastic increases in property tax under the current government, highlighting that while there were no tax hikes during the decade of AIADMK rule, the DMK government has increased property tax by 100% since taking office, with an additional 6% annual increase announced recently. He noted, “Power tariffs and garbage taxes have also gone up,” adding that the property tax rates in Tiruppur Corporation are significantly higher than those in Coimbatore Corporation.
The disparity in property tax rates, even for buildings located on the same road, has further compounded the challenges faced by traders and small business owners. In response to these mounting issues, the protest was organized to capture the attention of both the central and state governments regarding the GST on building rent and property tax hikes. The bandh received support from DMK alliance parties, including the AIADMK, as well as various industry associations.
“We called for a complete shutdown to highlight our grievances regarding GST on building rent and property tax increases, demanding their repeal. At least one lakh shops remained closed, leading to a trade loss of Rs 100 crore. The central and state governments need to address our concerns. If they fail to do so, we will intensify our protests,” Duraisamy warned.
