Excise exemption sought for SSI units

The SSI units in Andhra Pradesh have called for full exemption of excise duty or increase in the turnover limit from Rs 1 crore to Rs 5 crore in the forthcoming budget.

According to a media statement, once the SSI units cross the more than Rs 1-crore turnover limit, they have to pay 16 per cent duty plus value added tax in addition to the excise duty of 16 per cent and sales tax already paid on raw materials.

"We are unable to compete with imported goods and with similar manufacturers who are below excise limits of exemption," P Seshanjaneyulu, president of the Anantapur District Chamber of Commerce and Industry, said, adding that they are, therefore, appealing to the central government to either give total exemption of excise duty or raise the turnover limit.