The decision has brought cheer to the thousands of handicraft artisans and dealers who had been clamoring since long for the exemption of handicraft from VAT.

Hailing the decision secretary general Kashmir Chamber of Commerce and Industry Abdul Hamid Punjabi said it was a major relief to the handicraft industry. “We welcome this decision. It is an achievement for the handicraft sector,” said.

However, Punjabi said the furniture ought to have been bought under the purview of zero percent VAT in toto. “Most of the furniture items in the Valley are made from walnut wood carved with designs,” Punjabi said.

He said by keeping the furniture items apart from the exemption, many wood-carving artisans would continue to suffer losses.

Punjabi said the KCCI had raised this issue time and again with the state government and the finance minister. “We have represented a number of times to the government and today by taking this decision we feel that our long pending demand has been met,” he said.

Mention to be made that many state governments in India have kept the handicraft sector outside the purview of VAT.

Many handicraft traders told Greater Kashmir that following the imposition of VAT the handicraft sector in the state had come under strain.

The state earns a big chunk of foreign exchange from handicraft. “The VAT imposition had brought down such earnings,” the traders said.

They said given the rupee appreciation the margins for the traders had further tightened. “The decision has come at a most opportune time, because we are facing the brunt of the strong rupee against the dollar. But now that most of the items have been brought under zero VAT, we expect better earnings,” they said, adding that it would also help the artisan community in the Valley.

Mention to be made that to bring back the lost charm of Kashmir handicraft foundation stone of International Trade Centre (ITC), in Pampore was laid in the past month.

The ITC project aims to boost Kashmiri handicraft industry by holding various international exhibitions and fairs. This in turn will attract potential foreign buyers, helping the sector gain overseas trade.