CHOKED BY FOREIGN HAND, CHEMICAL COS WANT GOVT O2

Article Abstract:

The chemical industry in India contributes 15 percent of industrial production at Rs75,000 crore. The international prices of finished products and intermediates like aniline, phenol and acetone have declined by 50 percent in the past one year. The demand has declined by 70 percent in south east Asia. The price of aniline declined from $750 per tonne in 1997 to $480 per tonne in 1998, the price of phenol has declined from $675 to $430, benzene from $310 to $200 per tonne and polyvinyl chloride from $720 to $460 a tonne. In India, the import duty on chemicals has been reduced from 120 percent to 30 percent in the past five years. Domestic chemical companies want the Indian government to levy an additional duty of 40 percent on imports to counterbalance the declining international prices. They want the government of India to levy a safeguard duty of 25 percent on imports as a permanent solution. The Indian Chemicals Manufacturers Association wants a special additional duty to be levied on all imports. It wants feedstock and fuel to be supplied at international rates. (rk)(vr)

Comment:

The chemical industry in India contributes 15 percent of industrial production at Rs75,000 crore.

Sales, profits & dividends

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PAINT COMPANIES WANT SOPS TO FIGHT IMPORTS

Article Abstract:

The paints industry has requested the government to rectify the anomaly of higher import duty on many organic and inorganic chemicals than that for finished paints. The import duty on titanium dioxide, a key raw material, is 40 percent while that on finished paints is 30 percent. The decision of the government to fix the assessable value for excise at 60 percent of maximum retail price (MRP) will affect paint companies as paints are not sold at MRP in the market but at much lesser prices. The industry has asked that assessable value should be reduced to 50 percent of MRP. It also wants the base excise duty of 18 percent now to be reduced to 15 percent. The Indian Paint Association has asked that the excise levy of 25 percent on intermediates like alkyl resins should be reduced especially for those units which do not avail Modvat facilities. (khr)

Comment:

India: Paints industry asks govt to rectify anomaly of higher import duty on numerous chemicals than that for finished paints

International economic relations

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GOVT LOOKS AT TAX SOPS TO RAISE SAVINGS

Article Abstract:

The government of India plans to raise the ceiling on the savings amount on which tax rebate is available or which is deductible from the taxable income. The move is a part of the government's plan to raise the savings rate to 30 percent of the gross domestic product. It may offer tax incentives for higher savings either under the existing sections of the Income Tax Act or by introducing new sections. Currently, an individual is eligible for a rebate of Rs70,000 under section 88 of the Income Tax Act. This limit may be raised by the government. Currently, contributions to public provident fund, equity linked saving schemes and unit linked insurance plans are eligible for deductions under section 88 of the Income Tax Act. (ag)

Comment:

India: Govt plans to raise ceiling on savings amount on which tax rebate is available or which is deductible from taxable income

Commercial Banking, Taxes, Savings Account Services, Savings accounts

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