A Dampened Deepavali In Tamil Nadu, Hit By GST And Demonetisation

With a nearly 40 per cent dip in cracker sales, Tamil Nadu saw a rather silent Deepavali this year. Traders say the impact of the Goods and Services Tax or GST and demonetisation appeared to have played a part in the dampened festivities in the state. Sivakasi in Tamil Nadu, known as the country's firework capital, was hit by the increase in the GST on firecrackers that was put in the highest tax slab of 28 per cent. Before this, traders had to pay a tax of 14.5 per cent on firecrackers. The indefinite strikes by fireworks manufacturing units in the state against the 28 per cent GST on fireworks failed to bring them relief.