Financial Daily from THE HINDU group of publications
Friday, Jun 25, 2004

Cross Currency

Group Sites

Industry & Economy - Taxation

Timber importers in Karnataka strike against `heavy taxes'

Our Bureau

Trucks are seen parked in timber yard near the New Mangalore Port area following strike by timber importers.

Mangalore , June 24

TIMBER importers in Karnataka, who are opposing heavy taxes being imposed by the Government, are on a strike for the past 20 days. They stopped activities related to timber transportation to sawmills in the State on June 5.People in the timber industry say that the sector, including sawmill owners, has incurred a loss of around Rs 90 crore to Rs 120 crore due to the strike.

Heavy taxation on the imported timber is the major contention of the importers.

Mr Babulal V. Patel, Vice-President of Karnataka Timber Importers' Association, told Business Line that every "Forest Transit" timber permit in Karnataka now costs 266 times more than what it was before May 19. Prior to May 19, timber importers used to pay Rs 15 for every permit. Now they have to pay around Rs 4,000.

Mr Patel said that the May 19 notification increased the forest transit permit to Rs 200 per cubic metre. As 20-cubic metre of timber is transported in a lorry, it amounted to around Rs 4,000 per permit.

Asked about the total loss to the sector, he said that nearly 150 to 200 trucks transported timber from the New Mangalore Port to the different parts of the State. Each lorry transports timber worth Rs 3 lakh to around 10,000 sawmills in southern India. The sector has been incurring a loss of around Rs 4.5 crore to Rs 6 crore a day. In the past 20 days, the sector has suffered a loss of around Rs 90 crore to Rs 120 crore.

Nearly 2,000 labourers work in this sector in the New Mangalore Port area. The strike has affected their livelihood also.

Added to this, sawmill industry in Karnataka was burdened with tax.

At present, these operators had to pay 8 per cent forest tax, 13 per cent sales tax, 15 per cent surcharge on road development fund and 1.5 per cent APMC tax, Mr Patel said.

These taxes were in addition to the 5 per cent income tax imposed by the Union Government, 1 per cent turnover tax and 1 per cent surcharge imposed by the State Government.

Office-bearers of the Karnataka Timber Importers' Association say that these difficulties have forced some of the importers to divert their import consignments from the New Mangalore Port to Tuticorin and Kandla ports.

New Mangalore Port, which was importing timber worth Rs 800 crore four years ago, is importing Rs 300-crore worth timbers now.

Mr Patel said that a delegation of the association would meet the Chief Minister, Mr Dharam Singh, in Bangalore on Friday in this regard.

More Stories on : Taxation | Karnataka

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Consumer body digs up dirt on detergents

BHEL sets up solar power plant in Bengal
Interior-exterior expo in Chennai
AP Govt to curb `unproductive' expenses to curtail Budget deficit
Reforms must create more jobs, benefit all people: PM
Rare surgery saves heart patient's life
Heritage offers elder care assistants programme
Nanguneri park may get new lease of life
New gas find off Orissa coast
ONGC threatens to cut off gas supply to Gail — Demands GSA with take-or-pay
OVL to invest $200 m in Sudan pipeline project
Dear gas
APGenco to implement MS Navision package
State Finance Ministers meet on VAT tomorrow
Timber importers in Karnataka strike against `heavy taxes'
Govt may raise threshold limit for SSI sector
NCL's coal price hike piques NTPC
Electrical industry seeks import duty sops on inputs
Final product norms for soft drinks being delayed: CSE
World of Food India 2004 fair in Hyderabad
FAPCCI against further waiver of power dues
Maditssia office-bearers
WTO chief to meet Commerce Minister today
Demand for HR personnel up
Seminar on exports
Serenading the media
Bangalore to host IIM seminar tomorrow
US to discontinue domestic visa service for 6 categories
Bank guarantees for visas: Malaysia assessing travel agents' views

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line