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`Hike in excise duty on cement unnecessary'
Our Bureau
NEW DELHI, Feb. 28
THE Cement Manufacturers Association, in its reaction on the 14 per cent increase in the excise duty on cement from Rs 350 to Rs 400 per tonne, has said that it is an unnecessary burden on a key input material such as cement, at a stage when `Housing for all' is a major national priority.
Speaking to Business Line, Mr A.V. Srinivasan, Secretary, Cement Manufacturers Association, said that cement is one of the highest taxed commodities.
"The production cost before packaging, freight and local taxes is around Rs 1,000-1,200 per tonne, but a Rs 400 excise duty would translate into a 36 per cent hike in the ex-factory price, which is unnecessary."
He said though the increase in excise duty would step up the revenue of the Government, the burden on the customer would increase by almost Rs 1,000 crore.
On the other hand, Mr Srinivasan also welcomed the Finance Minister's proposal to earmark additional investment for concrete roads, railways, airports and seaports and continued tax rebate in housing.
"This would considerably help in demand generation, and we hope that investors will realise that the lifetime cost of cement concrete roads is lower than conventional roads and thereby make cement concrete their medium of choice," said Mr Srinivasan.
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