Quarries seek withdrawal of tax hike on fuel

The stone quarries, crushers, and readymix concrete (RMC) making factories will be affected by the State government’s decision to increase Value Added Tax on petrol and diesel, according to K. Chinnaswamy, president, stone quarry and crushers owners association.

Mr. Chinnaswamy said Coimbatore district had over 100 RMC plants and more than 100 crushing units. The quarries, most of which were small and located on just five to 10 acres, were nearly 250 in the district. On an average, a small crushing unit would have 10 to 20 lorries and bigger ones, such as those present in Karur, would have nearly 100 lorries. The crushing unit, quarry and RMC plants would have to shell out at least ₹ 2,500 more for every lorry every day even if they were transporting the goods within a short distance because of the hike in tax on fuel. No other State had done so.

“For more than a month, all production facilities have remained idle. The industry faces the threat of migrant workers going back home soon. In such a situation, increasing tax on diesel and petrol, and fuel costs going up will only hit the industry,” he said.

“The crushing units, quarry owners, and RMC plants are not asking for special support for revival. But the government should ensure that the production costs do not shoot up. Demand is expected to be low when the industries restart and this will add to the financial burden of the crushing units and quarries,” he said.

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Printable version | Jun 5, 2020 3:59:48 PM |

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