Granite owners, workers protest in Karimnagar against new tax GOs

Granite quarry owners and workers staged a protest in Karimnagar seeking withdrawal of GO 14 and 16, citing heavy tax burden. They demanded continuation of GO 4 and warned that nearly 30,000 families face job loss if the crisis persists

Karimnagar: Granite quarry owners and workers on Friday staged protest demonstrations in Karimnagar town demanding that the state government abolish GO 14 and GO 16, which they said had become a threat to the industry, and continue GO 4 for two more years.

Granite owners and workers under the aegis of the Karimnagar District Granite Quarry Owners’ Association took out a rally in the town before staging a dharna at the Collectorate office.

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Speaking on the occasion, Association district president I Vijayabhaskar said that the state government had enhanced tax by 20 percent through GO 14 and GO 16. According to the GO issued on July 8, they now have to pay an additional amount of Rs 1,435 per cubic metre. GO 4, which was issued three years ago for the benefit of the industry, should be continued for two more years, he demanded.

He said royalty was enhanced three years ago, and the crisis that began in the granite industry after the Covid pandemic continued due to international issues, including wars. They now have to spend 65 percent on transportation and other costs, besides royalty. Forget about profits, granite units were reeling under crisis following the abnormal increase in taxes and reduction in concessions. Unable to cope with the losses, hundreds of units have already shut down.

While the Telangana government was increasing taxes, other states such as Andhra Pradesh, Karnataka and Odisha had reduced taxes and were collecting only 10 percent. As a result, buyers and workers were shifting to those states. Currently, only 60 to 70 units are functioning, out of 950 granite units in the district. The remaining units would also shut down if the latest GO is not withdrawn, he said.

Requesting the state government to protect the granite industry, he urged that royalty be abolished immediately. He also sought a reduction in seigniorage charges to 40 percent and in the District Mineral Foundation Fund from 20 percent to 10 percent. About 30,000 families dependent on the industry would lose employment if the sector was neglected, he said.