Govt softens stance on dual cement excise
Impasse between domestic cement producers & FM has led to rise in cement prices.
By INDIATIMES NEWS NETWORK |
NEW DELHI: In a bid to rein in inflation and bring down the prices of cement in the domestic market, the Government has exempted imported cement from countervailing duty and 4 percent special additional customs duty.
Central Board of Excise and Customs (CBEC) has brought into force the Finance Ministry’s directive with immediate effect.
The latest duty exemption is only on Portland cement and not white cement. The Government had, before the presentation of union budget by Finance Minister P.Chidambaram on February 28, had exempted cement imports from payment of basic duty.
However, the cement prices continued to be high even after the duty waiver. Finance Ministry has pointed out that the cement prices increased to Rs 220 from Rs 165 per bag (50 kg bag) in February this year. This went up further to Rs 220 per bag (50 kgs) in March 2007.
The measures announced in the budget seem to have had no impact on the cement prices in the domestic market. The much publicized meeting between cement manufacturers and the Finance Minister P.Chidambaram did not break the ice between the two.
In order to force the reduction in prices of cement, Finance Minister has increased the excise duty to Rs 600 per tonne on cement sold at maximum retail price of Rs 190 and above per bag of 50 kgs.
He had also reduced the excise levy on cement to Rs 350 from an earlier Rs 400 per tonne on cement sold below Rs 190 per bag of 50 kgs.
Central Board of Excise and Customs (CBEC) has brought into force the Finance Ministry’s directive with immediate effect.
The latest duty exemption is only on Portland cement and not white cement. The Government had, before the presentation of union budget by Finance Minister P.Chidambaram on February 28, had exempted cement imports from payment of basic duty.
However, the cement prices continued to be high even after the duty waiver. Finance Ministry has pointed out that the cement prices increased to Rs 220 from Rs 165 per bag (50 kg bag) in February this year. This went up further to Rs 220 per bag (50 kgs) in March 2007.
The measures announced in the budget seem to have had no impact on the cement prices in the domestic market. The much publicized meeting between cement manufacturers and the Finance Minister P.Chidambaram did not break the ice between the two.
In order to force the reduction in prices of cement, Finance Minister has increased the excise duty to Rs 600 per tonne on cement sold at maximum retail price of Rs 190 and above per bag of 50 kgs.
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He had also reduced the excise levy on cement to Rs 350 from an earlier Rs 400 per tonne on cement sold below Rs 190 per bag of 50 kgs.
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