Failing to get impressed with the partial rollback of excise duty of 10 per cent now payable by manufacturers on 45 per cent of maximum retail price value (earlier proposed at 60 per cent of MRP), Chamber of Knitwear & Textile Associations of Ludhiana President Ajit Lakra has called for indefinite strike starting from tomorrow (March 24). He termed the announcement made by finance minister as nothing but a cosmetic change to the Budget proposals.
Lakra added, Excise duty of 10.3 per cent now payable by manufacturers on 45 per cent of MRP value was no relief, it’s just a correction of a wrong calculation of the Ministry.
“It is common knowledge that manufacturers selling price is normally 35-45 per cent of MRP. In the Budget, Excise was proposed to be imposed on 60 per cent of MRP, higher than the manufacturer’s selling price. As it is well known that Excise duty is a ‘tax on manufacturing’, hence this announcement is just a correction to make Excise levy on the correct manufacturer’s selling price,” Lakra said.
He added, with duty free imports from SAARC countries the domestic industry would find it all together difficult to compete with this double digit increase in their costs due to Excise duty. Lakra said the association would go in for indefinite strike starting from tomorrow to protest for their demands.