The Hindu Business Line : Paints sector seeks higher excise benefit

The paints sector has urged the Finance Ministry to raise the excise abatement incentive for paints sold at maximum retail price (MRP) to 50 per cent from 40 per cent.

Speaking to newspersons at a curtain raiser to the three-day 23rd Indian Paint Conference, Mr Subir Bose, Managing Director of Berger Paints India and former President of Indian Paints Association (IPA), said that while the benefit was to the extent of 50 per cent (of MRP) for other FMCG products, only the paints segment in the consumer goods category has to pay excise on 60 per cent of the retail price, impacting the allowable dealer discounts. Paints fall in the 16 per cent slab.

Mr Bose said that creation of a level field would also greatly minimise the large number of litigations pertaining to excise payouts in the paints industry.

The IPA, whose members account for more than 80 per cent of the total paint production of 1.4 million tonnes worth Rs 10,000 crore, has also suggested that import duty on raw materials for paints be lower than that on finished products to render the domestic units more competitive. Currently, the pricing is not related to cost-plus, Mr Bose said.

He also said that there has to be a balance between domestic production and imports if Indian paint units have to stay competitive in an emerging scenario where major global players like Akzo Nobel and Nippon are preparing to storm the large Indian market.

According to him, it is still cheaper to import certain inputs like epoxies and solvents.

Mr Bose said that raw material prices internationally have risen very quickly on the back of rising crude oil prices, but now that oil prices have dropped, the price upswing is getting reversed very slowly. However, he expects raw material prices to remain stable in the next couple of months.

Conference

Speaking on the conference, which is set to attract some 150 foreign delegates from 22 countries, Mr Arvind Bhasin, Convener, said that it would discuss a plethora of science and business subjects that will engage the Indian industry in the foreseeable future.

More Stories on : Paints | Excise and Customs

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