Tyre business positive even as Centre hikes rubber licence fees

By: | Published: January 18, 2018 2:20 AM

Centre has revised the fees charged for special licences issued to rubber manufacturers, dealers and processors, according to a communique from Rubber Board of India.

 Even as the government has increased the licence fees for manufacturing products from rubber, the tyre industry is positive that the increase has been in tune with what business captains had suggested to the Centre, during earlier deliberations. (Reuters)

Even as the government has increased the licence fees for manufacturing products from rubber, the tyre industry is positive that the increase has been in tune with what business captains had suggested to the Centre, during earlier deliberations. Meanwhile, rubber manufacturers, dealers and processors will have to pay a higher fees for special licences this month onwards. “At 175th meeting of the Rubber Board recently, Automotive Tyre Manufacturers Association (ATMA) suggested the board to revise the license fee at regular intervals instead of increasing at a higher rate once in a while. The board had accepted the suggestion. This decision to increase the fee appears to be in line with the proposal we had made,” Rajiv Budhraja, director general, ATMA told FE. Centre has revised the fees charged for special licences issued to rubber manufacturers, dealers and processors, according to a communique from Rubber Board of India.

The revised rate for issuing licenses per year or part of a year to rubber manufacturers (above 4 metric tonnes per year), dealers and processors is Rs 1,000 (18% and GST extra) and the fee for manufacturers (up to 4 metric tonnes per year) is Rs 500 (18 % and GST extra). The fee for manufacturer issued emergency license has also been revised to Rs 500 (18% GST extra). The revised rates are applicable from January 9, 2018, the Rubber Board said in a statement on Wednesday. The tyre industry had earlier voiced concerns about the rising costs of production, especially in the wake of higher fuel costs. Because of increased fuel expenditure, trucker might end up buying retreaded tyres instead of a new tyre.

A number of raw materials like synthetic rubber, butyl rubber, styrene-Butadien Rubber (SBR), Polybutadienc Rubber (PBR), carbon black, etc are derivates of crude oil and so. when crude oil prices are going up, the raw material chain of the tyre industry gets impacted, ATMA had earlier pointed out. However, the tyre industry has been positive in its reaction to this week’s hike in license fees on rubber products.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition