Kilns to stop production over coal GST hike

Oct 6, 2022 | GST FAQ, News | 0 comments

The All India Brick and Tiles Manufacturing Federation have decided to stop production this year at around one lakh units, including 8,000 in Bengal.

The strike was announced in the light of a failed month-long effort to get the Centre to lighten taxes on the industry and following a reported meeting of its members with Union finance minister Nirmala Sitharaman in September that yielded no result.

The developments come in the wake of a recent hike in GST on coal to 6 percent from 1 percent, along with the independent price rise of coal to RS 20,000 a quintal up from RS 9,000 in a span of fewer than three years

The strike, if implemented, is set to affect over 15 lakh employees and laborers in Bengal. “On top of everything, there is now a GST on wages as well. We want to go on strike because we can’t afford the production cost at all. Our strike at this point is more of an inevitability than a protest,” said Ashok Kumar Tiwari, the president of the federation.

Tiwari said the coal ministry had also been formally apprised of the situation. The Bengal chapter represents roughly 8,000 manufacturing units, all of which may go on strike. Tiwari explained that the traditional brick industry was a linchpin for construction and the alternative brick industry had not seen much uptake in the country.

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