August 30, 2017
The incidence of tax after the implementation of the GST regime from July 1 has left motor pump and spare part manufacturers in dire straits, according to the industry.
Manufacturers are now paying more than 50 per cent as tax, right from procuring raw materials to selling the finished products, Kovai Power Driven Motor Pumps and Spare Parts Manufacturers’ Association (KOPMA) president K Maniraj told mediapersons here today.
The industry will be totally wiped out from the region as it is not possible to survive after paying these taxes that have hit the bottomline, he said.
The nearly 3,000 pump and spare part manufactures and the more than 1 lakh dependant workers, he claimed, would soon face a situation similar to that of farmers, forcing many to even commit suicide.
It is important that the Government should withdraw the high tax or else the manufacturers would have to down shutters.
As a first step to convince the authorities of the need to intervene and save the industry, there will be a total shut-down on September 8 and a the association members will hold a demonstration. The future course of action would depend on the Government response, Maniraj added.