The Hindu Business Line : Customs duty cut in ensuing Budget will not hurt domestic industry: PHDCCI

THE United Progressive Alliance (UPA) Government should lower customs duties from the current peak level of 20 per cent to 15 per cent in the ensuing budget, the new President of the PHD Chamber of Commerce and Industry (PHDCCI), Mr K.N. Memani, has said.

"If they (domestic industry) have endured at 20 per cent customs duty levels, another 5 per cent cut will not kill them", Mr Memani told Business Line here.

The PHDCCI President claimed that the domestic industry had in the recent years staved off competition from Chinese goods through better quality of its products. He also pointed out that the Government had already indicated that customs duties would move towards the ASEAN levels.

Mr Memani has become the President of PHDCCI at a time when the chamber is entering into the 100th year of its existence.

As the apex chamber of northern India States, Mr Memani held that the PHDCCI would in the current year focus energy on sensitising the State Governments on the need for common market in this region.

"If not in the entire northern India, we should look into the possibility of at least 3-4 States coming together to form uniform laws and procedures.

Areas covering Noida, Gurgaon and Delhi could be designated as one common market if there is an agreement between the three States. This would help in free movement of goods between these regions", he said.

With the introduction of value-added tax (VAT) round the corner, the PHDCCI intends to play a key role in educating its members about the new laws and procedures.

On the proposed investment commission, Mr Memani hoped that the Commission would not end up as a propagating agency for investments.

"It cannot be successful unless it is backed up by internal reforms. The Government should strengthen its hands by removing handicaps for investments", he said.

The State Governments should encourage the setting up of special economic zones (SEZs) and that there should be labour law flexibility in such zones, he said.

More Stories on : Excise and Customs | Other States | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page