Indorama Synthetics wants excise duty on MMF cut to 4pc

In its pre-budget expectations, Indorama Synthetics Limited has put forth a number of issues to be considered for their incorporation in the Union Budget 2015-16. The company has sincerely requested the government that all the issues may kindly be considered for their incorporation in the Union Budget 2015-16 so that polyester fibre / filament yarn industry can achieve its full capacity utilization, tap the vast potential of MMF markets that exist globally.

It will also help Indian companies to compete with their Asian counterparts in terms of exports, achieve the Vision Target of US$650 billion by 2024-25 set by the Textile Ministry, besides adding to the country’s GDP and generate more employment for the masses.

Indorama has enlisted following major issues before the Finance Ministry for its consideration,

Lowering of excise duty on man-made fibre (MMF) / filaments from the present 12% to 4% to boost growth. The reduction of excise duty at the primary stage would help across the entire value chain to increase consumption right from the fibre stage to the garment stage thus resulting in more revenues for the government.

To reduce the Customs Duty on PTA and MEG to 0% and increase the Customs Duty on Filaments, PSF and Chips to 10%.

Refund of Special Additional Duty (SAD): As the manufacturers in certain segments of industry like Polyester Fibre are unable to utilize the import duty credit against the duty on output, it is therefore requested that similar facility of refund should also be allowed to manufacturers who are unable to utilize the SAD credit of duty. We suggest that SAD should be 2%.

Fibre Neutral Policy: Further to reinforce our demand for parity in duties, we would like to highlight that in our neighboring countries like China, Pakistan, Indonesia, Thailand and Turkey there is no difference in duties on Man Made fiber and cotton fiber.