Tyre makers and dealers at an impasse
The India tyre dealers’ federation is fighting to end import duties on radial tyre imports. However, the tyre manufacturers disagree, arguing that a zero import duty on tyres isn’t practiced in any other country, and the impracticality of duties for raw materials exceeding those of finished goods.
Currently, India has a duty of 20% of rubber and 8% of tyre imports.
Additionally, increasing duties on raw material imports are increasing the price of domestically produced tyres. Alok K Modi, director of Modi Tyres agreed and said, “If we abolish import duties for tyres, then the government should close all the industries in India –automobile, two-wheeler, steel– if we can import everything without any duty.”
The vested interest of both organizations currently prevents them from reaching an agreement.
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