Financial Daily from THE HINDU group of publications Friday, Mar 10, 2006 |
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Industry & Economy
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Excise and Customs States - Tamil Nadu Plea against duty on soaps, bricks, locks Our Correspondent
Madurai , March 9 The Tamil Nadu Chamber of Commerce and Industry has appealed to the Union Finance Minister to provide excise duty exemption to handmade bricks, soaps, biscuits, locks and other products manufactured without the aid of power. In a statement here, the Chamber President, Mr S. Rethinavelu, said that the Finance Minister has brought products manufactured without the aid of power under 16 per cent excise levy by cancellation of the exemption notification. These industries, based mainly in rural areas, provide abundant employment opportunities for illiterate rural population and have been severely impacted by the levy. In Tamil Nadu, there are about 2,000 brick-making units and 300 soap-making units, providing employment directly and indirectly to lakhs of people. In the three districts of Madurai, Ramanathapuram and Sivagangai alone, 200 brick-making units employ about 25,000 labourers directly and 75,000 labourers indirectly. The levy of 16 per cent excise duty on bricks will seriously affect the construction industry throughout the country. The same crisis situation also prevails in biscuits, locks and other products manufacturing units in rural areas functioning without the aid of power. At a time when the Union Government is keen on providing an impetus to the housing sector and infrastructure for industrial development and upgradation of rural economy, the present excise levy on handmade bricks, soaps, biscuits, locks, etc will be counter productive and retard their growth.
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