The Mosaic Tiles Association of Morbi has sought exemption from Value Added Tax (VAT). In a letter to the chief minister, the association has said that while the government has relaxed CENVAT and lowered petrol-diesel prices to provide succor to the industrial sector in general, the floor tiles sector has not been considered for sops.
The burden has been crippling city mosaic units, which have slumped to a mere 40 from 300, the letter said. In the face of stiff competition from gloss floor tiles , marble tiles and vitrified tiles segments, the mosaic tiles segment is in trouble. Besides, as mosaic tiles are used mainly by rural folk and middle class, it should be granted exemption from VAT after being declared as a cottage industry, the letter pointed out.