Financial Daily from THE HINDU group of publications
Friday, Feb 11, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 11, 2005 |
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Industry & Economy
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Budget Budget: Confectioners' plea to limit duties Our Bureau
Chennai , Feb. 10 THE Indian Confectionery Manufacturers' Association (ICMA) has urged the Finance Minister to limit the maximum impact of duties and taxes on confectioneries to 12.5 per cent including excise duty of 8 per cent and other State taxes of 4 per cent. According to an ICMA press release, it has represented that the excise duty on sugar boiled confectionery be retained at 8 per cent, but abatement (base duty charged on `MRP less abatement') be allowed at 40 per cent instead of 35 per cent now. The press release pointed out that soft drinks and aerated drinks are allowed 45 per cent and pan masala at 50 per cent. The 16 per cent excise duty, it said, should be brought down to 8 per cent as in the case of toffees and candies. For bubble gum and chewing gum sold at 50 paise and Re 1 per unit, the levy should be rationalised at 8 per cent, the release said. According to the ICMA, the import duty on cocoa beans is fixed at the same rate applicable to that of finished chocolate products. This affects domestic manufacturers who use this as an input for value addition. The ICMA has asked the Government to lower the duty to 20 per cent. It has also requested the Government to consider de-reserving all categories of sugar boiled confectionery. Though some categories are reserved, import of all categories is under the open general licence, this puts the domestic industries at a disadvantage, the release said. The ICMA said that the request should be seen against the backdrop of the price point related to coinage issues, which is peculiar to the industry, and the unprecedented increase in cost of sugar, packing materials and transportation.
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