While traders of Tirunelveli and Palayamkottai welcomed Goods and Service Tax with black flags, the match industry downed shutters indefinitely from Saturday as the Union government has decided to levy 18% GST on matches made in the partially-mechanised and fully-mechanised factories.
The traders of Gandhi Market at Palayamkottai, who gathered at the main entrance of the market at midnight, tied black flags at the entrance and raised slogans, saying: “The Union government, through GST, will strangulate the trading community.”
93 industries
All 93 partially-mechanised match industries at Kovilpatti, Kazhugumalai, Kadambur, Vanaramutti, Elayarasanenthal, Kayathar, Vilaththikulam and Ettayapuram in Thoothukudi district are participating in the indefinite strike.
Consequently, the industry is facing a production loss of ₹ 10 crore a day.
“While the Union government proposes to impose 18% GST on matchboxes being manufactured in the fully-mechanised units, the same treatment is being meted out to the partially-mechanised units also, which is totally unfair. The small matches manufacturing units are struggling for survival following price escalation of raw materials and after the ‘small industry’ status was withdrawn. It’ll just decimate the industry and the lives of several lakh workers,” said Paramasivan, president of Small Matches Manufacturers’ Association.
Demanding the roll-back, the Association decided to close down their units from July 1 and take out a massive rally at Kovilpatti on Monday (July 3) to highlight their demand.
Demonstration
After staging a demonstration in front of the Central Excise Office every day until their demand is met, the labourers have decided to stage a rail roko on July 10.
