Laundromat Industry Demands for Lower GST Rates In Upcoming Budget 2024

Laundromat industry employs downtrodden people and for it to flourish, lower GST is mandatory, says Gunjan Taneja, Co-Founder of UClean.

The Laundromat industry closely mirrors the traditional Dhobi practices of yore, wherein garments were collected from homes, washed near riversides, and returned after thorough cleaning. In the contemporary context, laundromats employ new machines and technologies to perform similar services, not only generating employment for a particular demographic but also leading to significant conservation of water, detergent, and resources.

Given the essential role of a laundromat in our daily lives, much like eating and bathing, we advocate for the government to recognize them as a necessity. Heavy taxation on this industry seems unjustified, considering its positive impact on employment and resource conservation.

Speaking on behalf of the laundry and dry-cleaning industry of India, Ms. Gunjan Taneja, Co-Founder of UClean said, “we earnestly implore the government to address this issue by reevaluating the Goods and Services Tax (GST), ideally reducing it from 18 per cent to 5 per cent.”

The laundromat industry employs people at the bottom of the strata and for the industry to flourish, we need to do away with the very high GST so that more people can avail the services and the overall community can grow financially.

“Also, the government should consider providing loans or subsidies on the purchase of commercial laundry equipment which are very expensive, making them unaffordable for the larger laundry community”, added Ms. Taneja.

Driven by increasing hygiene awareness, the laundry market in India is projected to reach INR 76.5 billion by the end of 2024. With lower GST, the industry can reach better growth in the coming years.

Photo by Bianca Jordan on Unsplash

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