Fireworks industry withdraws agitation

Government promises it will raise issue of high GST in Council meet in August

The fireworks industry that has been on an indefinite strike against the higher goods and services tax (GST) of 28% since June 30, on Wednesday announced withdrawal of its agitation following the assurances given by Tamil Nadu government that it would present the case before the GST Council in August for redressal.

After a meeting of representatives of the three major associations of the cracker industry and other related industries here on Wednesday, the president of Tamil Nadu Fireworks and Amorces Manufacturers’ Association (TAMFAMA) A. Asaithambi announced the decision to withdraw the strike.

Govt’s assurance

Office-bearers of TANFAMA, The Indian Fireworks Manufacturers’ Association and Tamilan Fireworks Manufacturers’ Association met the State Finance Minister D. Jayakumar and Commercial Taxes Secretary C. Chandramouli and explained to them the deleterious impact of the GST on the fireworks industry.

“The Minister said that the Tamil Nadu government would take up the issue with the GST Council when it meets on the first Saturday of August. He has also asked us to impress upon the finance ministers of other States too on the higher tax on our industry and seek their support,” TANFAMA secretary Mariappan said.

He also said that the State Government was fully aware of the issue.

“The fact remains that no authority can make any changes in the rate of GST till the GST council meets on the first Saturday of August. Hence, we have decided to give up the strike and make our representation before the council,” Mr. Mariappan said.

G. Abiruben, a leading fireworks manufacturer, said that the fireworks industry, being labour intensive with women accounting for 80% of the workforce, could not absorb the 28% GST.