Budget upsets Agra diesel engine makers
Vishal Sharma
New Delhi/ Agra. The Budget this year may have been termed as a “common man’s Budget” by the Prime Minister, but in reality, tax provisions made by the finance minister have caused quite a tremor in the Agra industries.
The diesel industry of Agra is fighting a losing battle in face of continuous rise in diesel prices and the stringent pollution norms made effective in Agra over the past one year.
And it was hoping for a raise in the excise exemption for small-scale diesel engine manufacturing units from Rs 1 crore to Rs 1.5 crore, considering the rise in inflation rates. Now it has been dealt a terrible shock by the increase in the excise slab for diesel engines from 8 per cent to 16 per cent, which is expected to raise the prices of diesel engines by almost Rs 2,000 for an agricultural pumpset, something that this industry could ill-afford at this time.
According to Rakesh Garg, director, Prakash Diesels, considering the raise in the excise slab, the prices for diesel engines will surely rise, though it was still premature to predict exactly how much more the diesel engines will cost by this 8 per cent raise, considering the fact that the effect of this Budget on the large numbers of components that were used in the manufacture of diesel engines was yet to be studied.
Talking to Business Standard, Rajiv Gupta, former president, National Chamber of Industries and Commerce, UP, said the Agra industrialists were expecting a raise in the turnover slab for excise exemption from Rs 1 crore to Rs 1.5 crore and instead, they had been burdened by absolutely illogical taxes, which was detrimental to the growth of the small scale industries.
Rajesh Goyal, secretary, Agra Iron Founders Association, said that the excise hike on diesel engines and the resulting price rise would have a boomerang effect on the foundry industry of the town which was thriving solely on the manufacture of iron castings for diesel engines and this, in turn, would affect the economy of the entire town where a large part of the population was associated with these two industries in some manner.
The diesel industry of Agra is fighting a losing battle in face of continuous rise in diesel prices and the stringent pollution norms made effective in Agra over the past one year.
And it was hoping for a raise in the excise exemption for small-scale diesel engine manufacturing units from Rs 1 crore to Rs 1.5 crore, considering the rise in inflation rates. Now it has been dealt a terrible shock by the increase in the excise slab for diesel engines from 8 per cent to 16 per cent, which is expected to raise the prices of diesel engines by almost Rs 2,000 for an agricultural pumpset, something that this industry could ill-afford at this time.
According to Rakesh Garg, director, Prakash Diesels, considering the raise in the excise slab, the prices for diesel engines will surely rise, though it was still premature to predict exactly how much more the diesel engines will cost by this 8 per cent raise, considering the fact that the effect of this Budget on the large numbers of components that were used in the manufacture of diesel engines was yet to be studied.
Talking to Business Standard, Rajiv Gupta, former president, National Chamber of Industries and Commerce, UP, said the Agra industrialists were expecting a raise in the turnover slab for excise exemption from Rs 1 crore to Rs 1.5 crore and instead, they had been burdened by absolutely illogical taxes, which was detrimental to the growth of the small scale industries.
Rajesh Goyal, secretary, Agra Iron Founders Association, said that the excise hike on diesel engines and the resulting price rise would have a boomerang effect on the foundry industry of the town which was thriving solely on the manufacture of iron castings for diesel engines and this, in turn, would affect the economy of the entire town where a large part of the population was associated with these two industries in some manner.
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