The tyre industry in India, which is also a big industry like the two wheeler industry is looking forward t upcoming budget with topmost hope and optimism as they are urging for the customs duty review on the natural rubber.
FICCI, in its pre-budget memorandum has said that it is imperative that customs duty of principal raw material of tyre industry i.e. natural rubber is revisited and reduced from 20 percent to a suggested level of 7.5 percent to make duty paid imports viable.
They say that while the customs duty rate on tyres and the peak rate of customs duty on all non agricultural products were progressively reduced in the Union Budgets during the last few years, in the case of natural rubber the rate of 20 percent customs duty has remained unchanged for over a decade.
This has resulted in a serious anomaly of customs duty on raw-material like natural rubber at 20 percent being higher than the customs duty on finished product like tyres at 10 percent. This is the main reason which lead the FICCI to come in front of central government with this need.
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