Disabled demand rollback of GST on aids

BENGALURU: It has been eight years since Mansoor Ahmed changed his caliper. The one he owns was bought for Rs 20,000. Now, they cost more than double. "It is a challenge to buy a caliper when the cost of living has gone up so much. I know really poor people who haven't changed calipers in 15-20 years. After a point, it could cause the disability to worsen," says Ahmed, a senior manager with a Bengaluru-based non-profit.

To disabled people like Ahmed, the 5% GST on basic aids and appliances like calipers, Braille writers and cochlear implants is an additional load. "We are already burdened by other costs - illnesses and medicines. It's quite unfair if I will have to pay more if I have to walk," says Ahmed.

The decision to tax aids and appliances for the disabled continues to draw flak despite a hastily put together statement last week reducing GST and capping it at 5% for 22 categories of products.

Cars

will continue to have 18% GST even if they are retrofitted for a disabled driver. The disabled find it hard to reconcile that they will have to shell out more while items such as sindoor and bangles got a waiver.

"This is the government that launched the Accessible India campaign and Inclusive India campaign. I don't understand why they should charge people to walk with a cane," says Nirmita Narasimhan, policy director, The Centre for Internet and Society.

Poor access

The economic burden is accentuated by a lack of institutional support, whether in terms of accessibility to public transport or provision of affordable aids. "There is close correlation between poverty and disability. Most of us can't step out of our houses as roads, pavements and public transport are inaccessible," asks Javed Abidi, director, National Centre for Promotion of Employment for Disabled People.

Narasimhan notes in her submission to the government that the 21 million disabled record low literacy level (59%, below national average of 74.4%) and low work participation (36.3%).

To reduce the financial burden, Abidi and others fought to do away with taxes on aids since 2000. "We could bring down tax rates, sometimes as high as 20%, on various items to 5%. In 2006, it became zero and the last decade was the most important one for disability rights. Instead of making aids more affordable, we are now going back 10 years and charging 5% again," says Abidi, a wheelchair user.

Local boost?

The

finance

ministry statement says the 5% 'concessional' rate is better than an outright exemption as it encourages local production and reduces prices. Manufacturers of devices for the disabled have to pay 18% GST on whatever raw material they procure. However, they can avail input tax credit and claim a refund later.

Bhargav Sundaram, CEO,

Callidai Motor Works

, a Chennai-based manufacturer of wheelchairs, said this is encouraging. "I pay tax when I buy steel. When I sell wheelchairs, I will have to charge 5% (GST) on the consumer but can adjust the tax that I had already paid later. That comes as a relief," says Sundaram. He said initial estimates show that the product cost, in this case wheelchair, could come down by 15-20%.

Imports rule

Imports of devices, earlier exempt from duty, will be charged now. While that could make local products more competitive, the fact remains that close to 90% of devices used by the disabled are imported. Sundaram says that local products can become more competitive if GST is rolled back while manufacturers continue to avail input tax credit.

Abidi says rollback is essential. "We are not looking for sops. The government could take this opportunity to come out with a scheme to manufacture aids and appliances locally and promote this industry that has a huge export market," he says.

5% GST

Braille writers, electronic braille, optical sensors, calipers, gaugers, wheelchairs, electronic larynx, cochlear implants, talking books, obstacle detecting appliance, white canes, external catheters, special jelly cushions, urine collection bags, instruments and implants for severely physically handicapped patients; joints replacement and spinal instruments and implants including bone cement

Exceptions: Apart from milk, vegetables and newspapers, prasad, bindi, sindoor, bangles and handloom


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