CHENNAI: Sharing concern over the risks the cracker manufacturing sector could face due to the proposed GST and influx of cheap Chinese items, Finance Minister D Jayakumar on Wednesday assured the Assembly that the government would continue to prevail upon the GST Council for retaining the existing rate.
Responding to DMK’s KKSSR Ramachandran, who moved a motion, Jayakumar said, “The Union Finance Minister has said that tax hike issues can be taken into account even after GST roll out. So, we will continue to prevail upon the GST Council to retain the existing rate for cracker and matches sectors.”
Jayakumar said if the associations of crackers and matches producers could meet other States’ Finance Ministers to garner their support, it might help TN to put more pressure on the Council.
Ramachandran said the GST hike for crackers, from 12% to 28%, and matches from 6% to 12%, would spell doom for the industries which provided jobs for about 10 lakh in Virudhunagar district, particularly uneducated labourers.