Tyre dealers demand scrapping of 10% import duty

Tyre dealers demand scrapping of 10% import duty
Tyre dealers have asked Finance Minister Arun Jaitley to abolish the import duty of 10% currently applicable on tyres. In its wish list for FY2015-16 Budget, the All India Tyre Dealers' Federation (AITDF) has said that the import duty needs to be done away with in order to check "unfair and exploitative behaviour of the domestic tyre industry."

The AITDF accused the domestic tyre manufacturers of charging very high and in spite of the fact that the prices of raw material have come down significantly.

“The tyre dealers demanded abolition of 10% duty to counter the domestic tyre cartel," the AITDF said in a statement.

Earlier, the Automotive Tyre Manufacturers’ Association (ATMA) had demanded an increase in import duty from 10% to 20%. According to ATMA, if the import duty on tyres is increased, the duty on tyres will become at par with that on natural rubber.

“For successful implementation of ‘Make in India’ campaign and to promote domestic manufacturing, it is important that import of finished products attract duties at least as much, if not more, than what is levied on raw materials,” said Raghupati Singhania, chairman of ATMA.