Kerala - Kozhikode   

Measures sought to end crisis in timber trade

Special Correspondent

Association blames `unrealistic tax system' for woes

KOZHIKODE : The Kozhikode Timber Merchants Association has urged the Left Democratic Front (LDF) Government to initiate immediate action to pull their business out of the red.

In a release here, the association said successive Governments had been indifferent to the problems that had emerged as a threat to their livelihood. The association sought immediate intervention of the Ministers in charge of Forest, Industry and Finance to revive their business.

It has been pointed out that the decline of timber business in Kallai where it had once flourished had already led to loss of employment to hundreds.

More timber merchants and their employees were likely to lose their means of livelihood unless the Government stepped in with steps to save timber trade.

The association had been trying to convince the Government that it was not labour problems but the "unrealistic tax system" that was ruining their business. The association also put forward their suggestions to solve the problems.

One of the suggestions is that Value Added Tax (VAT) be fixed at four per cent for all types of timber.

Association general secretary P.V. Lakshmanan said such a rule would be more beneficial both to the Government as well as the merchants since the existing rule under which small timber merchants with annual sales of up to Rs.5 lakhs were allowed to do business without registration was not benefiting them.

Going back to the system that was practised in the past under which property mark registration fee would be payable every year instead of the prevailing practice of paying a fee of Rs.5,000 for five years is another suggestion to ease timber merchants' hardships. It would also prompt more merchants to apply for registration.

The association made an appeal to the Forest Minister to convince the tax department that silver oak and other softwood like "thanni" had to be included in the third schedule so that VAT on these type of wood would be four per cent.

In a representation to the Government, the merchants complained that the "tern system" for getting services of lorries to send goods had also emerged as a threat to their business and alleged that those operating the system were interested only in helping big merchants.

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