Chemical Industry Seeks Zero Per Cent Duty on Feedstock, Raw Materials Import.

MUMBAI: The chemicals industry has sought zero per cent duty structure on import of feedstock and raw material in the forthcoming budget.

"We have received a charter of demands from industry representatives, seeking certain exemptions in custom duties. We have forwarded their demands to the Government," Chemical and Petrochemicals secretary M Raman said on the sidelines of a CII event today.

The industry has also expressed the need for reducing custom duties on import of intermediates to around 5 per cent and to levy around 7.5-10 per cent duty on finished products.

"It has been observed that the duty paid on raw materials is equal or at times higher than the duty paid on finished products manufactured in the country. This makes our products uncompetitive in the market. We have asked the Ministry of Chemicals to intervene and sought reduction in custom duties," India Glycols CEO Rakesh Bhartia said.

Raman said the Government was committed to supporting the growth of the speciality chemical sector, which is poised to grow to USD 100-billion by 2020.

"The chemicals industry is a prime mover in the Indian economy and the Government is committed to support its growth, with a focus on speciality chemicals in particular, which has the potential to grow from the current USD 20-billion to USD 100-billion over the next 10-years," Raman said.

Source : economictimes.indiatimes.com