Another brick in the wall: When Centre adds tax, kiln owners cut wages

Transporters also increase fares 15% over fuel prices.

HYDERABAD:

If the federal budget proposal to impose a General Sales Tax is accepted we will not burden the customer by increasing the price of bricks, said Haji Amanullah, a kiln owner. “We will deduct the workers wages and charge tractor-trolleys drivers extra to make up for the General Sales Tax loss,” he said.

According to Amanullah, the kiln industry has already faced a cutback in sales due to the recent increase in fuel prices. “The cost of bricks has not increased, however, the transporters have increased their fares by 10 to 15 per cent,” he said. For Amanullah another price hike due to the GST might impinge on sales. “The increased rate of transport further increases the consignment rate as the bricks are mostly transported by tractor-trolleys. A customer is usually charged extra for transport,” he said.

The federal budget for 2011-2012 had proposed the withdrawal of a GST exemption enjoyed by some sectors of the construction industry, including bricks and cement.

Kiln owners across the country have rejected the tax and have announced a seven-day closure in protest starting July 2. They had previously organised a three-day strike from June 22 to June 24 on the same issue.

According to a tractor-trolley driver, they expect the kiln companies to deduct 20 per cent from the cost of transporting bricks. “Although this will decrease our wages and hurt our livelihood it is inextricably linked to the kiln industry so we have to accept it,” said Hassan Khan, a tractor-trolley driver. “The company’s owner has already worked out a wage deduction plan. I will now receive Rs320 instead of Rs400 daily,” said Malik Deen, a labourer. The brick kiln owners remain strong in their opposition.

Published in The Express Tribune, July 5^th, 2011.