21 January 1999: According to a recent press report, the All India Flat Glass Manufacturers“ Association (AIFGMA) has sought a reduction in the excise duty on flat glass from the current level of 18%…
21 January 1999: According to a recent press report, the All India Flat Glass Manufacturers“ Association (AIFGMA) has sought a reduction in the excise duty on flat glass from the current level of 18% to 5% in the forthcoming budget. In a pre-budget memorandum submitted to the Finance Ministry, the association said the per capita consumption of glass in the country was one of the lowest amongst the developing countries, and the only way to revive the ailing domestic flat glass industry was to increase the per capita consumption. AIFGMA has suggested that this could be achieved by reducing taxes. Since the demand for flat glass is highly price-elastic, high incidence of taxes has mainly resulted in the low level of per capita consumption in the country, the association said. According to the Association, the per capita consumption of glass in the country stood at 0.4 kg, while it was 2.5 kg in Indonesia, 3.5 kg in China, 5.2 kg in Thailand and 14 kg in Japan. The industry association has argued that lowering of excise duty on flat glass would help in reviving demand besides yielding higher revenues to the Government from an increase in consumption of flat glass. With lower prices and increasing demand, glass would increasingly replace the use of scarce wood, which would help in saving trees and protecting the environment, the memorandum noted. Accumulated losses reached Rs 544 as on 30 June 1998, of which Rs 126 accounted for the losses in 1997-98.