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The tyre industry has expressed concern over exclusion of rubber and tyres from the list of items on which duty inversion has been addressed.
“A big push to the infrastructure spending is a big positive for the automotive tyre sector as the growth in tyre is closely linked to the growth in economy. Infrastructure investment means more movement of goods and that translates into increased demand for tyres, especially commercial vehicle tyres,” said KM Mammen, chairman, Automotive Tyre Manufacturers Association (ATMA).
The tyre industry was pinning hopes on long-pending correction of inverted duty on natural rubber, he said.
Duty variation“Regrettably, tyres or rubber have not been included in the list of items where duty inversion has been addressed. Correcting inverted duty on rubber is important to increase competitiveness of the tyre sector. Currently, the import duty on natural rubber is 25 per cent, while the duty on import of tyres is around 7 per cent,” Mammen added.
Kamal K Chowdhury, president, All India Rubber Industries Association, said, “In view of the government’s emphasis on domestic manufacturing, we were hopeful that inverted duty would be corrected. However our hopes have been dashed again.”
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