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Tyre makers demand for a cut in the import duty from the upcoming Union Budget 2008-09
(Feb 12, 2008)
Indian tyre manufacturers demands a cut in the rubber import duty from the soon to be released union budget 2008-09. Such a demand is intended to eliminate inverted duty structure due to which rubber, an important raw material, that pulls higher duty than the finished product.

These Tyre producers desires the rubber imports duty to be 7.5 percent from the 20 percent presently. According to the Automotive Tyre Manufacturers Association (ATMA), such a step needs to be implemented as it would forbid against dumping of tyres from China and other countries. Presently, tyres carry an import duty of 10 percent, which was cut from 12.5 percent in the last budget.


In the last union budget 2007-08, the peak rates of customs duty on non- agricultural goods excluding rubber was cut from 12.5 percent to 10 percent.

This highly awaited demand holds importance due to the rubber prices growing to Rs.100 per kg and an 8 percent increase in demand is set to exceed domestic production which is growing at 3-4 percent, as per ATMA.

Apart from this, ATMA also demanded for release of customs duty on several other rubber products such as butyl rubber, polyester tyre cord, styrene Butadiene Rubber and Bromo Butyl due the reason that such products are not manufactured locally.