New Delhi, Dec 07: The chemicals and petro-chemicals sector which contributes 14 per cent of country's exports has urged the government to immediately look into its problems of high production cost that was making its products uncompetitive in the wake of lifting of quantitative restrictions the world over. Stating that the process of economic liberalisation and globalisation has had a significant impact on the chemical industry, the industry said the national demand and supply assessment had now been rendered irrelevant and it was the global demand and supply that will decide scale and level of production.

The chemical and petro-chemical industry, which will hold a one day inter-active session with representatives of the government here on Monday, is also demanding a review of the multiple taxes which it says had led to financial constraints for the industry. In a paper which will be discussed at the meeting, it said the mutli-level taxation -- excise, central sales tax, state sales tax and octroi -- had rendered the cost of production high.

"There is a need to review the level of taxation in order to make our product competitive in the international market," the paper quoted the industry representatives as saying.

They also said the customs duty should be comparable to other countries.

Bureau Report