Government removes Import Duty on Cement to moderate local prices

With a view to increase availability of cement and moderate prices, the Government has exempted imports of Portland Cements (other than white cements) from countervailing duty (in lieu of excise duty) and the special additional duty of customs of 4% vide notification no.53/2007-Customs dated 3.4.2007 with immediate effect.

Cement prices have been rising in the course of last one year. The average price of cement has risen from Rs.165 per 50 Kg. bag in January 2006 to Rs.209 per 50 Kg. Bag in February 2007 and to Rs.220 per 50 Kg. Bag in March 2007.

The Government, with a view to keep prices of cement in check, had fully exempted basic customs duty on Portland cements in January 2007. However, cement prices continue to be high. The cement industry was requested to moderate prices in the interest of the consumer. However, The industry is of the view that prevailing high prices are a consequence of a demand-supply mismatch. It is expected that the present move will improve supply situation in the country.

Government has already invited cement manufacturers to come forward with proposals to moderate the price of cement. Government expects that the cement manufacturers, in the larger interests of consumers and for checking inflation, will take appropriate measures for moderating cement prices.

Source : Press Information Bureau

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