New Delhi, Sept 3: An apex Indian rubber industries association has expressed concern over the hike in excise duty on rubber which has been imposed to get additional funds for rubber development programmes, saying it would burden the industry and stifle its growth."Since development programmes for rubber growers have already reached its height, there is no need to spend any more for this purpose," All India Rubber Industries' Association (Airia) northern region chairman Suresh Elwadhi said in a letter to commerce secretary PP Prabhu.
The government hiked the excise duty, called rubber cess, to Rs 1.50 a kg from Re 1 with effect from September one following a request from the rubber board to increase allocation for development programmes.
Stating that the industry had been pleading with the government for abolishing rubber cess, he said the purpose for which it was introduced had been achieved long ago.
Plantation industry should be treated as a full-fledged industry and the cess should be abolished,he said.
Until the cess was abolished, the amount collected should be utilised for benefit of the rubber consuming industry for research and development, human resources development and technical education, he said.
Since the cess was being paid by rubber manufacturing unit only, such a move would help in producing quality goods, he added.
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