Denying reports of a large scale job losses, leading biscuit maker Parle Products on Monday (August 26) clarified that the company might have to carry out lay-offs if their demand of lesser tax rates are not met.
Recently, it was widely reported that the biscuit manufacturer could lay off 10,000 workers due to slowing economic growth, falling demand and consequent production cuts.
“The news about 8,000 to 10,000 job losses at Parle G is not a factual story,” an ANI report quoted Mayank Shah, senior category head at Parle, as saying.
Stating that the facts have been hyped by the media, he said, “The condition of job loss is actually an eventuality if our demand for lesser tax rates is not met.”
He said that it was not true that any of its workers have already lost their jobs. The fact, Shah said, the company cannot continue with the same number of workers if the production falls.
“I believe that 18 per cent Goods and Services Tax (GST) on biscuits is too much. Biscuits were exempt from excise tax earlier. But now they are taxed at 18 per cent,” Shah was quoted as saying.
Besides, other products of the company like Rush, which were earlier exempted from taxes, have now been brought under the 5 per cent GST bracket. Shah contended that even biscuits could be put in the same category.
“It is important to talk about the fair tax rate for us. A high tax rate can affect our volume of production. About jobs which we are talking is actually an eventuality of the whole scenario,” Shah said.