September 24, 2019
Image credit : Illustrative Image
Coimbatore : Expressing disappointment for not reducing tax on motor and pump sets at the recently held GST Council meeting, nearly 3,000 units affiliated to Kovai Power Driven Pumps and Spare Manufacturers Association (KOPMA) will stop operations on September 27, to seek status quo of taxes prior to GST Implementation.
The pump and motor sector, the identity of Coimbatore across the world, was suffering since the implementation of GST, following announcing tax on job works and also increase in the tax on purchase and sales of finished products, KOPMA president, K Maniraj told reporters here Tuesday.
Despite repeated pleas the Centre failed to reduce the taxes and neglected the sector completely, he said that the economic slow down has also severely affected the manufacture and sales of the pumps and motors, he said.
The sector did not require any concession from the Centre, Maniraj said adding that it should withdraw the increased tax of six per cent on job works and also maintain status quo of five per cent on purchase and sales single tax rate.
On the top of it, the State government has imposed a 100 per cent hike on property tax for buildings and residences in the city, which was also affecting the units, 70 per cent of which were functioning in rented buildings, the owners of which were likely to increase the rents, he said.
To bring the problems of the sector, KOPMA decided to observe one- day closure of its member units on September 27, by which there will be a production loss of Rs.20 crore, Maniraj said.
Incidentally, all major political parties have called for a bandh on that day to protest against the property tax hike.