Industry & Economy
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Ceramics
Tile industry irked by duty structure
Our Bureau
New Delhi
,
March 8
Though the customs duty on raw materials for the tile industry has been rationalised in the Union Budget 2006-07, the Finance Minister has failed to correct the anomaly of inverted duty structure that exists, say tile manufacturers.
The present customs duty on raw materials such as ceramic colours, frit, boric acid and ceramic rollers ranges from 12.5 per cent to 7.5 per cent, while the import duty on the finished goods attracts a mere 5.37 per cent import duty, they say. The Chairman of the Indian Council of Ceramic Tiles and Sanitary-ware (ICCTAS), Mr Girishbhai Pethapara, says, "The tile manufacturers were expecting relief measures in the Union Budget. It is disheartening to note that the anomaly of inverted duty structure has not been corrected."
Lower duty on import of tiles has resulted in an increase in dumping of Chinese tiles in the domestic market, according to tile manufacturers. Further, the tile industry is disappointed that the exemption from the fringe benefit tax (FBT) has not been accorded to tile samples distributed by the industry. According to Mr Pethapara, "Providing free samples is a major marketing necessity for the tile industry. Imposition of FBT on samples has put additional tax-burden on tile manufacturers."
The Finance Minister also ignored the industry's demand of increasing the rate of abatement from the existing 45 per cent to 50 per cent, say the tile manufacturers.
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