The Hindu Business Line : Customs duty cut may hit ceramic tile market

THE rationalisation of customs duty, bringing the peak rate of duty to 11.6 per cent, has not gone down well with indigenous manufacturers in the ceramic tile industry.

According to Mr Vijay Aggarwal, MD, H&R Johnson (India) Ltd, the announcements have brought the effective duty on ceramic and vitrified tiles down to 39.2 per cent from 50.8 per cent earlier.

Since the rate of duty on raw materials and intermediates is also pegged at 39.2 per cent, local manufacturers have little incentive for value addition and it also thwarts fresh investments in the industry, he said.

According to Mr Aggarwal, it was imperative that the custom duty on the raw materials was lower than the finished goods, so that the local manufacturer was encouraged to make fresh investments and the industry got a level playing field.

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