Acrylic fibre manufacturers want exemption on ACN duty
15 Apr '06
1 min read
Acrylic fibre manufacturers seek that excise duty on Acrylonitrile monomer (ACN) should be reduced to 8 percent from current level of 16 percent.
They also want exemption from the 4 percent additional custom duty levied on imports of ACN.
To manufacture Acrylic fibre, Acrylonitrile monomer is essential raw material. Manufacturers have to import Acrylonitrile monomer as IPCL is the only manufacturer in the country.
In the Budget 16 percent duty on ACN was retained and therefore Countervailing Duty (CVD) continued to be charged at 16 percent.
acrylic fibre manufacturers state that they can manage only 8 percent duty by way of Cenvat on acrylic fibre as against 22 percent cenvatable duty on imports.
Government's strategy of having such large gap between input-output is not clear, said an acrylic fibre industry official.
According to official, acrylic fibre industry has been incurring heavy losses because of high cost of imported raw materials.
By justifying their demand they stated that removal of 4 percent additional custom duty would not hurt Indian industry as ACN is not manufactured in the country for sale.
marketing@alchempro.com
