Match units begin indefinite strike against 18 per cent rate

Kovilpatti is the hub for match box units in southern districts. The completely mechanised units do not employ labour right from chemical mixing to packing. There are only 20 such units in the entire state. However, the part time units or the semi-mechanised units dominate the match box industry. 

Most of the brands have semi-mechanised units and they employ thousands of people both directly and indirectly. Earlier, the fully mechanised units were paying 19.5 per cent tax which included 12.5 per cent VAT, 6 per cent excise duty and 2 per cent Central Sales Tax. 

However, the semi-mechanised units were paying only the 6 per cent Excise Duty and after GST was implemented all the match box units were brought under the same slab of 18 per cent. 

The semi-mechanised units should be brought under the GST slab of 5 per cent demanded the owners and workers of match box units. Sethu Ramalingam, Secretary, National Small Matchbox Manufacturers Association, said that the tax structure is another way to destroy the semi-mechanic match units and so they have decided to shut down the units indefinitely, he added.