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Tamil Nadu
Handmade match units breathing fire
Staff Reporter
MADURAI: Handmade match manufacturers feel suffocated by the practices followed by mechanised units.
Over 300 semi-mechanised units functioning in many districts had the advantage of mass and continuous production. With less number of workers employed, their production cost was Rs.60 less (for 600 match boxes) than that of handmade manufacturers, D. Baskaran, convenor of Tiruchirapalli Match Manufacturers’ Federation, told reporters here on Friday.
Handmade manufacturers were exempted from central excise and Sales Tax to withstand competition.
At the same time, the mechanised units had production ceiling, 12 per cent central excise with VAT facility and ST of 10 per cent. “But semi-mechanised units have evaded 10 per cent sales tax (till 2006) and 12.5 per cent value added tax for 10 years,” he said.
“While a leading mechanised unit has incurred a huge loss in eight decades, how can there be around 300 mechanised match units flourishing in the last 10 years,” he asked.
Stating that a High Court ruling made sales tax collection mandatory, he said that still strict enforcement was absent. The handmade sector wanted the Government to increase the CENVAT for mechanised units from 12 per cent to 16 per cent.
Representatives of Sattur Taluk Match Manufacturers and Raw Materials Traders Welfare Association, Handmade Match Manufacturers’ Federation, Kovilpatti, were present.
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