Paper, cardboard tax rise 'nullifies' perks of GST cut on safety matches

Potassium chlorate suppliers have also hiked prices by 4K per tonne to cash in: Manufacturers

- 

DESPITE the GST on safety matches going down to five per cent from the earlier 12%, the rise in taxes of two important raw materials has taken the wind out of the industry's sails.

Industry officials told TNIE that paper and cardboard, two vital raw materials, have now been shifted to the 18% slab from the previous 12%. The GST on other raw materials among 15 major components, including a few chemicals, remains the same. However, manufacturers are of the view that they are unable to reap the benefits of the GST 2.0. They say that the suppliers of potassium chlorate (a key chemical component in matchboxes) have increased a flat 4,000 per tonne to cash in on the time. However, it can't be attributed to the GST revision.