THOOTHUKUDI: Following an indefinite strike by stone quarry operators, as many as 45 stone quarries and 35 crusher units were shut in Thoothukudi, on Tuesday. Among these, four crusher units were sealed for not procuring stockyard permissions and two quarries due to public agitation. The operators went on an indefinite strike condemning the levy of mineral-bearing land tax.
The Tamil Nadu mines and geology department introduced a mineral-bearing land tax fixed for 32 minerals with accordance to Tamil Nadu Mineral Bearing Land Tax Act, 2024 anticipating an additional revenue of Rs 2,400 crore annually.
According to stone quarry owners, cost of a tonne of stone includes seigniorage fees of Rs 60 and 10 percent each of District Mineral Foundation Trust, Green Fund, and 2 percent of Income Tax summed up to Rs 73.2. The introduction of tax has added Rs 90 per tonne, which has sharply increased a tonne of stone to Rs 163.2. Thoothukudi district stone quarry owners association president Kasi Rajan said that all the stone quarries had participated in the strike to condemn land tax.
The additional taxes would hike the cost of minor minerals like stones, jelly and crusher sand which will cause a cascading effect on the construction industry. The raw material for the construction industry will further increase the construction cost, he said.
Thoothukudi civil engineers association president Henry Daniel said that, “The strike of the stone quarries will adversely impact supply of raw materials for the construction industry which employs a large number of workers. The industry may be cripple if the protest is prolonged.”