Govt intervention sought to remove duty anomalies

Our Corporate Bureau

Mumbai, Nov 19: CII and the Refrigeration and Airconditioning Manufacturers Association (RAMA) have sought the intervention of the Government of India to remove several anomalies and
ambiguities in the customs and excise duty structure.

They have also charted out strategy to work closely with the Government to make available energy efficient airconditioning and refrigeration products and solutions including cold storages at a more affordable cost to the consumers.

According to Blue Star Ltd president and vice-chairman Suneel Advani who has been elected as president of RAMA, “
Given the fact that the future of our economy is largely dependent upon the services sector, the Government must recognise that the airconditioning is a critical success factor for the services industry.

While RAMA is committed to the introduction of energy efficient and eco-friendly products, we expect the Government to provide necessary concessions in order to make airconditioning and refrigeration products more affordable.”

Another issue the members have highlighted is the high rate of taxation on room split airconditioners.

While most of the consumer durables such as refrigerators and washing machines attract 16 per cent excise duty, air conditioners attract a special duty of 16 per cent in addition to the basic duty of 16 per cent making the effective duty 32 per cent.