Kerala - Kozhikode   

Tile-makers seek exemption from Central excise duty

Staff Reporter

KOZHIKODE: Tile-makers have appealed to the Centre to exempt clay roofing tiles and allied products from central excise duty.

M.A. Abdurahiman, Calicut Tile Manufacturers' Association president, told presspersons here on Monday that central excise duty of 8.2 per cent had been imposed with effect from March 1 on tile manufacturers having a turnover of over Rs. 4 crores, under the Union Budget 2006.

The Centre had imposed tariff-rate excise duty in 1975, a 15 per cent excise duty in 1997 and four per cent in 2002, which were all withdrawn subsequent to submission of representations from tile manufacturers.

Mr. Abdurahiman said there were around 410 tile-making units in the State. At present, only 185 of them were functioning. The excise duty would be a big blow to the functioning units.

He said the tile industry was in the doldrums as availability of raw materials, such as clay and firewood, had come down. Many industries at Farook, near Kozhikode, had been shut down. The only silver lining was the use of tiles atop concrete roofs, which was the in-thing now.

He said tile units, unlike other industries, employed a large number of labourers.

Nearly half the turnover of tile companies went towards paying salaries.

Workers were in dire straits owing to the closure of some units. If the central excise duty were not withdrawn, more units would be shut down, rendering many more labourers jobless. The cost of tiles would also go up, he added.

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