Eliminate Customs Duty on Fuel Oil in Chemical Industry, Says Indian Chemical Council
[2012-02-24 15:06:06]
The Indian Chemical Council is of the opinion that there are some severe constraints and stumbling blocks for the growth of chemical industry in India. These include surge of imports from Asian and Middle East countries and growing menace of dumping.
Currently, there are some severe constraints and stumbling blocks for the growth of chemical industry in India such as the surge in imports from Asian and Middle East countries and producers from Middle East (with feedstock cost advantage) and China are aggressively pursuing Indian markets due to very low tariff levels.
Also, there are issues like high cost of power, energy, finance and capital equipment, high internal transaction costs, high internal taxes and VAT rates, high logistics cost due to poor infrastructure and state levies, entry taxes add to the local transaction costs which are hindering its growth.
Against this background, ICC has proposed elimation of following Custom Duties:
1. Elimination of Customs Duty on Alcohol (2207 20 00) for production of chemicals from current level of 6%.
2. Elimination of Customs Duty on Liquefied Natural Gas (2711 1100) from current level of 5%.
3. Elimination of Customs duty on basic petrochemical feedstock like Naphtha (2710 1190) from the current level of 5%.
4. Elimination of Customs duty on basic petrochemical feedstock like Saturated Acyclic Hydrocarbon Ethane(2901 1000), Propane (27111200) and Butanes (27111300)
5. Elimination of Customs duty on Aromatics Feedstock (2707 9900)
6. Elimination of Custom Duty on Crude C4's (27111900).
7. Elimination of Custom Duty on EDC (2903 1500)and VCM (2903 2100)
8. Rationalizing Customs Duty on Naphthalene(2902 9040) in relation to Benzene & Toluene
9. Reduction in import duty on Titanium Dioxide (2823 0090) to 5% from current 10%.
10. Elimination of Customs Duty on polymer building blocks like Ethylene(2901 2100) and Propylene (2901 2200 )
11. Elimination of Customs Duty on Octene (2901 2990), Butene-1 (29012300) and Hexene (29012990)
12. Elimination of Customs Duty on spares for Chlor-Alkali industry (98010030)
13. Elimination of Customs Duty and Clean Energy Cess on Coal (2701 2090) for captive power generation.
14. Elimination of Customs Duty on Fuel Oil (27101950)
15. Tax free imports of R&D equipments & consumables (as approved by OST) to the tune of 25% of export earnings should be permitted.
ICC believes that these measures would catalyse the industry's growth and expects the union budget to look into its demands.
Source: The Economic Times
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