Production of plywood factories badly affected

YAMUNANAGAR: The implementation of Goods and Services Tax (GST) has adversely affected plywood factories in this industrial city of Haryana.

The production of almost all plywood factories in the district has come down to less than 50% as their owners are now running them for only 8 to 10 hours a day instead of round-the-clock as they did earlier.

Sources said more than 40% of the about 500 major and small industrial units in the district with an annual turnover of around Rs 3,400 crore have either shut production or have reduced production to only 50%.

They said many industries are now sacking their employees with their owners claiming that they cannot run their units round-the-clock as there is low demand due to GST.

“Most of the factory owners do not understand the GST and they have adopted a ‘wait and watch’ position and have reduced the production,” said an owner of a plywood factory at Damla in Yamunanagar.

“We had to shut factories for more than a month after demonetisation in November last year. Now, the GST has affected the factories,” he added.

The sources said owners of plywood factories are also worried over paying more taxes as the plywood industry has been kept under 28% tax slab.

40% OF 500ODD UNITS IN YAMUNANAGAR WITH ANNUAL TURNOVER OF AROUND ₹ 3,400 CRORE HAVE EITHER BEEN SHUT DOWN OR REDUCED PRODUCTION BY 50%