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Unchanged GST rate disappoints match industry
The safety match industry in Tamil Nadu, which exists mostly in southern districts especially in parts of Kovilpatti, Sattur, Sivakasi, Ettayapuram and Kazhugumalai, is disappointed after its demand to lower the Goods and Service Tax (GST) rate, which currently remains at 18 per cent, was ignored at the recent GST council meeting in New Delhi on Saturday.
By
migrator
migrator
Chennai
“We have conveyed our demands to 11 officials of the GST council and ministers concerned until now. The manufacturers, who had high expectations, have been let down again,” J Devadoss, secretary, South India Match Manufacturers Association, told DT Next on Sunday.
Terming the lack of support from the State Government as unfortunate, Devadoss said it should apply pressure on the GST council to lower the tax rate to 5 per cent.
“While the GST rate on 33 items including refrigerator, LED television and video camera have been lowered, this labour intensive manufacturing sector has been left ignored,” he said, adding that the market price of match boxes have remained constant despite GST and excise duty.
“Although the match industry contributes an annual foreign exchange revenue of about Rs 400 crore, the industry does not enjoy tax benefits. If the GST rate is not lowered, genuine tax payers and those who abide by the labour laws will be forced to move away from this industry,” Devadoss said.
While some manufacturing units are fully mechanized, others are semi-mechanized.
“Prior to the GST roll out, 12 per cent excise duty and 14 per cent VAT was levied on the former, while only six percent excise duty was imposed on the semi-mechanized units. However, all the manufacturers are now required to pay the same 18 per cent GST,” M Paramasivam, president, National Small Match Manufacturers Association, said.
Stating that the market is sluggish at present due to poor procurement, Paramasivam said, “The arrival of traders has come down since manufacturing units have come up in many parts of North India.”
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