Brick kilns: Protests grip Punjab due to tax imposition

16% GST will destroy the industry and increase inflation says an official of the Kiln Owners Association.

KARACHI:

About 3,500 kiln station houses have shut down, due to strikes by kiln owners, who are against the GST taxed on them in Punjab.

This had not only suspended construction work of billions in Punjab, but lead to unemployment of more than a hundred and fifty thousand families, directly and indirectly related to the profession.

In Multan and surrounding areas, over 450 kiln station houses had shut down, while in Lahore, more than 1,100 kiln stations had closed.

There have been protests sprouting all over Punjab against the sales tax imposition on this industry.

Unemployed daily wages labourers had also joined the protests against the government, saying that government didn’t care about the poor people in the country. According to rally participants, the poorest of Pakistan were earning their livelihood from this profession.

Kiln Owner’s Association President Rana Suhan criticised the government’s action and said that if the government will not take this tax back, the number of protests can escalate, and the government would be accountable for the number of unemployed daily wagers.

As far as industrial sector goes, billions of rupees had been stuck in the construction process as a result of the strike, and brick production had been suspended in Punjab.  Prices of bricks had also increased up to Rs10 to Rs12 per brick in some rural areas of the province. The 16 per cent GST will destroy the kiln industry, leading to increasing inflation in the country.

Speaking to The Express Tribune, Kiln Owners Association President in Faisalabad said that no machinery is used in making bricks, making GST unlawful on the kiln industry.  More than 600 kiln station houses had been shut down in Faisalabad and the surrounding areas.

The Kiln Owners Association of Pakistan said that if the government will not take this step back, protests will increase, and industry will shut down for a month.





Published in The Express Tribune, July 3^rd, 2011.