In protest against introduction of Goods and Service Tax (GST) from July 1, safety match industry would go on indefinite closure of their units from Saturday.
M. Paramasivam, president, National Small Match Manufacturers Association, said that the manufacturers had planned to intensify their protest by taking out a rally in Kovilpatti on July 3, staging a demonstration in front of the divisional office of Central Excise on July 4 and rail roko on July 5.
Manufacturers used to pay 6 % excise duty on total goods manufactured through semi-mechanised units, 12 % duty for matches manufactured through fully mechanised units, and 5 % sales tax. Introduction of 5 % GST on non-existent handmade sector was unnecessary and 18 % GST on production of safety matches by semi-mechanised and fully mechanised units was a big burden, he said. Around 100 semi mechanised units, its allied sector comprising 700 units, and 30 fully mechanised units were functioning in parts of Thoothukudi district. Some manufacturing units were operating in parts of Kovilpatti, Kalugumalai, Ettayapuram, Ottapidaram and Vilathikulam.
The workforce consists 90 % of women. Any halt in production would affect livelihood of these workers. The country’s foreign exchange would also be affected as possibility of exports would be hit, he said.
