Rubber industry demands discontinuation of cess on imported rubber
Updated: May 22, 2014 12:59:23pm
Kochi, May 22 (KNN) Concerned over the imposition of cess on import of natural rubber, the rubber industry has demanded its discontinuation saying that the cess can be levied only on rubber produced in the country under the Rubber Act.
The industry has been raising concerns on imposition of cess as the rubber industry has been dependent more on import of natural rubber as the international prices have gone down and supply has become tight in the local market.
According to All India Rubber Industries Association (AIRIA), cess is leviable only on rubber produced in India under the Rubber Act and excludes imported rubber from the purview of the said Act.
The association has sought clarifications on the issue from the Rubber Board, reports media.
The notification issued by the Ministry of Commerce regarding imposition of new rubber cess dated 29th August 2011 also talks about levying of cess on rubber produced in India only, said an AIRIA press statement.
Also, there are no provisions in the Foreign Trade Policy regarding levy of rubber cess on imported rubber.
In its communication, the Rubber Board has said that under the Rubber Act, only the rubber produced in India attracts cess and that the Board is the designated authority to collect the same.
"In view of widening gap between domestic natural rubber production and consumption, import of natural rubber in significant amount is inevitable,” a media report quoting AIRIA President, Niraj Thakkar said.
According to Rubber Board figures, the gap between domestic production and consumption widened to 133400 tonnes in the just concluded year 2013-14. “While we have been asking for duty free NR import to the extent of domestic deficit, any cess on import of rubber will be counterproductive and affect the competitiveness of the rubber sector", Thakkar further added. (KNN/SD)
The industry has been raising concerns on imposition of cess as the rubber industry has been dependent more on import of natural rubber as the international prices have gone down and supply has become tight in the local market.
According to All India Rubber Industries Association (AIRIA), cess is leviable only on rubber produced in India under the Rubber Act and excludes imported rubber from the purview of the said Act.
The association has sought clarifications on the issue from the Rubber Board, reports media.
The notification issued by the Ministry of Commerce regarding imposition of new rubber cess dated 29th August 2011 also talks about levying of cess on rubber produced in India only, said an AIRIA press statement.
Also, there are no provisions in the Foreign Trade Policy regarding levy of rubber cess on imported rubber.
In its communication, the Rubber Board has said that under the Rubber Act, only the rubber produced in India attracts cess and that the Board is the designated authority to collect the same.
"In view of widening gap between domestic natural rubber production and consumption, import of natural rubber in significant amount is inevitable,” a media report quoting AIRIA President, Niraj Thakkar said.
According to Rubber Board figures, the gap between domestic production and consumption widened to 133400 tonnes in the just concluded year 2013-14. “While we have been asking for duty free NR import to the extent of domestic deficit, any cess on import of rubber will be counterproductive and affect the competitiveness of the rubber sector", Thakkar further added. (KNN/SD)
Loading...
