FICO demands withdrawal of 2.06% central excise duty
A delegation of Federation of Industrial and Commercial Organisations (FICO) met PS Pruthi, chief commissioner, customs, central excise and service tax department, regarding the problems being faced by the northern industry, on Wednesday.punjab Updated: Dec 04, 2013 19:57 IST
A delegation of Federation of Industrial and Commercial Organisations (FICO) met PS Pruthi, chief commissioner, customs, central excise and service tax department, regarding the problems being faced by the northern industry, on Wednesday.
In a memorandum submitted to Pruthi, the delegation demanded to abolish 2.06% central excise duty on complete bicycles, saying that this industry was paying 12.36% central excise duty on raw material and other inputs.
“This makes the product from Ludhiana uncompetitive in the national and international markets,” members said.
The memorandum said, “The exemption on excise duty should be increased from Rs 1.50 crore to Rs 3 crore for smooth operation of industries,” they said, adding that the import duty on bicycle and their parts should be increased to 50%.”
“Since huge quantity of items are being imported in the country, thus destroying the medium, small and marginal enterprises (MSME) sector due to cheap and sub-standard goods,” FICO president Gurmeet Singh Kular said.
The delegation also urged the chief commissioner to take effective steps for discouraging imports of goods which, they said, was disturbing the existing trade industry in India.
The chief commissioner urged the delegation to send a representation regarding fixation of floor prices and assured them of early redressal of their problems.