The Small and Medium Scale Polyester Partially Oriented Yarn (POY) Manufacturers' Association (SMSPPA) have put up a memorandum to Finance Minister demanding reduction of excise duty on polyester chips from 16 percent to 8 percent and reduction of customs duty on import from 12.5 percent to 5 percent.
They said that excise duty on raw materials like polyester chips is 16 percent, while the duty on finished products like polyester POY is 8 percent.
But value addition makes it approximately 15 percent, which the industry will not be able to pass on to consumers.
The units may be shut down as excise duty on polyester chips would increase cost of production making it an unviable proposition as texturisers and weavers will also be affected, stated Madhav Bhageria, President, SMSPPA.
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