PESHAWAR, July 14: More than 600 marble factories in Mohmand Agency and its adjoining areas have been closed, as a strike against tax increase on minerals entered its fifth day on Wednesday.

Some 5,000 workers are employed in the sector and their jobs are at stake. Marble factories and mining association and truck union of the agency have been on a strike against what they say a 100 per cent increase in tax on minerals, terming it illegal and unjust.

Marble factories in Shah Kas industrial estate, and those in the agency's periphery, have been closed. Malik Ijaz Khan, a marble factory owner, said that the Fata secretariat had increase tax on raw marble stone from Rs600 to Rs1200 per truck which he said would cripple the industry.

"Marble stone from Mohmand Agency is being supplied to factories in the agency, the NWFP and the rest of the country. If the tax remains, it will increase the production cost and negatively affect the marble sector across the country," he said.

He said that apart from the mineral tax they also paid Rs500 per truck to the political administration. Previously, the officials of the Fata secretariat directly collected the tax but a huge financial embezzlement came to light. After that, the tax collection was assigned to a contractor, he said.

He added that the factory owners had set up a strike camp at Saro Kali on last Friday to press for the acceptance of their demands. He said that thousands of local people were employed in the marble mining.

"If the government cannot extend any support to us, at least it can refrain from creating hurdles in the smooth running of factories," he said. He said that if the government did not withdraw its decision then they would stage a sit-in in front of the Governor House and launch a protest movement.

Mr Khan said Governor Syed Iftikhar Hussain Shah was taking steps for the promotion of industry in Fata but actions such as this tax increase by the bureaucracy would defeat his efforts.

"We appeal to the governor to intervene in the matter and get the tax raise withdrawn for the promotion of industry in Fata," he said. He said the marble sector held great promise of attracting foreign investment. If the sector was squeezed, the prospective investors would shy away, he warned. -PPI