Tax on brass scrape cut

The Gujarat government has decided to slash the purchase tax on brass scrape from 2.4 per cent to 1.2 with immediate effect. A factory owners' association release said the decision has given a big relief to the brass parts industries of Jamnagar.

Previously, the finance department had made a provision of 1.2 per cent tax on the bras scrape purchase for manufacturing bicycle parts, but due to misinterpretation by the local sales tax authorities, a 2.4 per cent tax was imposed.

The association had urged the government to intervene in the issue, through the local MP Chandresh Patel and MLA Vasuben Trivedi. Now the state finance department has considered the demands of the brass parts industries to apply uniform assessment of 1.2 per cent purchase tax on the purchase of brass scrape for the manufactures of bicycle parts as a whole.

The brass parts units in Jamnagar had started losing shine following China's competition with liberal tax structure on brass scrape and less labour charges. As many as 3,000 small and medium brass parts manufacturing units employ thousands of artisans.

The industry is facing an acute financial crunch rendering thousands jobless, Kiran Madhvani, managing director, Navanagar Co-operative Bank Ltd, said.