The Union budget is proposing to raise the basic duty on compounded rubber from 10% to 25% or Rs 30 per kg, whichever is lower, at the same rate as non-latex natural rubber.
This is to curb evasion of obligations, Finance Minister Nirmala Sitharaman said in his budget speech on Wednesday.
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). expressed. According to the association, imports of compound rubber (CR) in 2021-2022 were 1.14 million tonnes. Importantly, ASEAN countries (Thailand, Malaysia and Indonesia) accounted for 87% of total imports duty-free under the FTA. “So, literally, an increase in import tariffs doesn’t seem to have much of an impact. Rather, CR will continue to be imported duty-free from ASEAN countries.” Applicable. Imports of CR increased by 21.73% annually, 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 with increased tariffs. Auto companies and consumers of rubber parts will have the option of importing finished goods, where tariffs are 10 percent lower, he said.
Mr Rebello added that UPASI had sought government support to ensure the stability of the plantation sector. UPASI’s main proposals for Budget 2023-24 are for the Commodity Commission to consider allocating more funds to implement the development scheme, to strengthen the benefits under the RoDTEP scheme for plantation commodities, and It was to raise the import duty on compound rubber from the existing rate to 25%. Ten%.
Allocations on the commodity board remained at about the same level, with the exception of a slight increase on the tee board, he said.