| Date: |
23-06-2015 |
| Subject: |
Hike import duty on pumps, demands cycle inc |
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LUDHIANA: The cycle industry has demanded that the central government should increase the import duty on bicycle pumps as the imported ones are eating away the market share of pumps being manufactured in Punjab, especially Ludhiana. Industry is demanding that import duty on these pumps should be at par with the duty on bicycles.
A meeting was conducted jointly by United Cycle Parts and Manufacturers Association (UCPMA) along with Amritsar Bicycle Manufacturer Associations (ABMA) regarding the imposition of custom duty on bicycle air pumps.
UCPMA president Charanjeet Vishivkarma said: "Punjab is the hub of cycle industry and near about 85% of the bicycles are manufactured in Punjab and supplied across India. However, recently one of the major issues related to bicycle pump came to the fore. These pumps are part of the bicycle which is required to fill the air. The central government, however, has put this item in the general pump category. Due to this reason, custom duty imposed on bicycle pumps is only 15% where as the custom duty on bicycles is 28%.
He further informed that before 2010 about 10 lakh bicycle pumps were being manufactured in Punjab which were sold not only in India and but abroad as well. This is the only item which is being fully manufactured in Punjab in the cities like Ludhiana, Amritsar and Malerkotla.
Now, due to import from China, the manufacturing of this item has reduced to only 2.5 lakh pieces per month, while about 3 to 4 lakh pumps are being imported from China at a cheaper rate, resulting in problems for local industries.
"In this meeting it was decided that we will be writing to the concerned ministries in this regard. If this bicycle pump is introduced into the bicycle category then naturally the custom duty on it will increase to 28% which will result in less import from China and the domestic industries can sell their products in the local market," added Vishivkarma.
Source : timesofindia.indiatimes.com
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