Chennai: The fireworks industry across Tamil Nadu is all set to hold an indefinite strike from June 30 against the Goods and Services Tax (GST), which is to be implemented from July 1.
The factories associated with the Tamil Nadu Fireworks and Amorces Manufacturers Association and Indian Fireworks Manufac-turers Association will stage a protest with a demand to reduce the tax on firework products from 28 percent to 12 percent.
“The fireworks industry has a seasonal nature with increased sales during parts of the year. Thus, the trade practices followed will not benefit the manufacturers or workers in any manner with GST,” says Shanmugam Raja, associated with Standard Fireworks industry, Chennai.
Fireworks manufacturers’ associations lament that there is no taxation on Chinese fireworks which are dominant in the fireworks market now.
“The fireworks in Sivakasi are a prime product of Tamil Nadu. With GST coming into effect, it will raise the consumer price by 50 percent, but Chinese crackers will remain free of taxes, which can completely close down the industry,” says A. Asaithambi, president of the Tamil Nadu Fireworks and Amo-rces Manufacturers Association.
The Tamil Nadu Government has also said it would take up the demands of the crackers’ industry to the Union Government.
