New Delhi, Nov 07: Lower duty structure for cement industry would ensure substantially lower costs for the ongoing infrasturcture development initiatives, R R Shah, Secretary (Industrial Policy Promotion) said today. Speaking at the 42nd AGM of Cement Manufacturers' Association here, Shah, however, said the duties could not be brought down abruptly even if desired, as the issue was closely linked with the touchy issue of revenue collection.
He asked the industry to come out with suggestions that strike a balance between the duties reduction and revenue collection.
"If a middle path is found out striking a balance between expectation on the duties and revenue compulsions, then some relief could be extended to the cement industry," Shah said.
The industry has been demanding reduction in sales taxes and excise duties.
In the Union Budget 2003-04, the excise duty on cement was hiked by Rs 50 per tonne, pushing up the total duty on cement to Rs 400 per tonne.
The industry is also paying royalty in limestone that was raised by 25 per cent in September 2000. It pays a basic duty of 25 per cent on coal, which works out to 30 per cent when the special additional duty on coal is added.
Bureau Report