Paint industry seeks lower excise duty

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Chennai: Reeling under slowdown in their major cosumer segment—the realty sector—the paint industry has a wish list for the Budget.

According to Ramakanth V Akual, governing body member, Indian Paint Association (IPA), the softer excise duty regime on paint products would enable a higher CAGR (compounded annual growth rate) for the paint industry and further be a blessing in disguise to Rs 1,50,000 crore anti-corrision and weathering prevention expenditure incurred by industry and home market segments.

Reiterating his demand for a softer excise tariff, he told FE that lower tax rates coupled with lower income tax charges on interest towards housing loans would kickstart the growth cycle in realty sector thereby creating the sustained demand for paint goods. Besides tax breaks, low-cost housing initiatives by the government would generate a housing boom concomitantly spurring a greater demand in volume terms for the paint industry, he pointed out.

He added that the Indian paint industry having a total turnover of around Rs 70,000 crore annually post a 18% CAGR since the last 3 years is quite expected to see a marginal decline at 15% this year, however remaining strong in terms of volume sales growth.