The Union Budget proposed raising the basic tariff on compounded rubber from 10% to 25% or Rs 30 per kg, whichever is lower, to the same level as non-latex natural rubber.
Finance Minister Nirmala Sitharaman said in a budget speech that this is to curb evasion of obligations.
However, welcoming the announcement, Jeffrey Rebello, president of the National Planters Association of South India, expressed concern that it was not clear whether tariffs would apply to imports from countries under the India-ASEAN Free Trade Agreement (FTA). According to the association, imports of compound rubber (CR) increased by 21.73% annually to 1.14 million tons from 2021 to 2022. Importantly, ASEAN countries (Thailand, Malaysia and Indonesia) accounted for 87% of total imports duty-free under the FTA.
“Thus, the increase in import tariffs, literally, does not seem to have much of an impact. Rather, CR will continue to be imported duty-free from ASEAN countries. will be done,’ he said.
U Shashi Singh, senior vice president of the All India Rubber Industry Association, said the rubber industry in the micro, small and medium enterprise sector will face problems due to increased tariffs. Auto companies and consumers of rubber parts have the option of importing finished goods, where tariffs are 10 percent lower, he said.
“It also applies to other countries such as South Korea, Germany, and the United States.”Jeffrey RebelloPresident of the National Planters Association of South India,