Morbi takes major ICCTAS role - October 25th (page 4)

It is felt that since China is a non-market economy, several types of assistance, concessions, aids etc are available to the ceramic tile industry. This gives them an unfair advantage over the Indian ceramic tile industry. As a result, the import of ceramic tiles from China is much cheaper and is affecting the entire domestic industry.
According to ICCTAS, it is imperative that the basic custom duty on raw material is kept lower than the basic custom duty on finished goods, so that an impetus is given to the local manufacturers, fresh investments are encouraged and a level playing field is created.
The new chairman will also be appealing to the finance ministry to increase the rate of abatement on MRP from 45% to 50%. It may be noted that ceramic tiles are assessed to excise duty on the basis of its MRP. Presently, the abatement on MRP for the purpose of calculation of excise duty is allowed at the rate of 45%. Given the high cost pressures that the industry is operating on, this abatement is felt insufficient and hampering the industry’s competitiveness.

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