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Our Bureau

`In no position to absorb increase in taxes'

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New Delhi March 5 Cement manufacturers today decided to stick with their decision to hike prices and have told the Government that they do not plan to roll back the price increase effected on March 1. At a meeting with the Department of Industrial Policy and Promotion Secretary, Mr Ajay Dua, cement manufacturers said they were not in a position to absorb the increase in taxes following a differential duty structure slapped on them in last week's Budget.

Cement manufacturers had raised prices in most parts of the country by Rs 10-12 per 50-kg bag from March 1, following a revision in excise duty announced in the Budget. "We requested them if they can rein in prices but they expressed their inability due to the differential in excise levy," a senior industry Ministry official told presspersons.

The Finance Minister, Mr P. Chidambaram, had raised the excise duty on cement priced above Rs 190 per bag to Rs 600 per tonne from Rs 400 in the Union Budget last Wednesday. Duty on cheaper cement bags was cut to Rs 350.

Meanwhile, the Revenue Secretary, Mr K.M. Chandrashekhar, said cement manufacturers needed to show restraint and take measures to moderate prices. He refused to attribute the rise in cement prices to the Budget proposal, saying the prices have been rising even before Budget.

"This (the price hike) has nothing to do with the Budget. The Budget passed a message to be careful about the prices. Hope the message gets through to them," he said.

More Stories on : Cement | Budget

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