The Lok Sabha on Monday approved the Budget for 2006-07 by passing the Finance Bill after certain amendments on indirect tax.
Finance minister P Chidambaram cut the basic customs duty on polyester chips and carbon black feedstock from 12.5 percent to 10 percent.
The duty cut on polyester chips would prove a boon to synthetic textiles manufacturing chain, particularly texturising units of Gujarat and Maharashtra would benefit much more as as tax on filament yarn (PFY) process and partially oriented yarn (POY) line would be at par now.
Texturisers convert POY to ready-to-weave yarn, while PFY goes directly to weavers.
The demand to cut excise duty on PTA and MEG to 8 percent was rejected by him.
The duty cut on carbon black feedstock would help tyre firms to a marginal gain, said Arun K Bajoria, President, JK Tyres.
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