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Restore 10% excise duty on auto components: ACMA

Expects the forthcoming budget to lead to creation of a favourable and stable policy environment to boost industrial revival and enable growth in domestic auto sector

Press Trust of India  |  New Delhi 

Automotive component makers body today asked the government to restore on auto parts to 10% in the upcoming for 2015-16.

With the concession on expiring on December 31, 2014, the tax rate has gone up again to 12%.
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The Automotive Component Manufacturers Association (ACMA) also urged the government to implement GST at the earliest and eliminate customs duty on alloy steel as part of its wishlist.

"These recommendations reflect the spirit of the auto component manufacturers who are looking forward for support from the government to revive the industry and to realise their ambition of growing to $35-40 billion and build overseas revenues of $20-22 billion over the next five years," said in a statement.

The industry clocked a turnover of $35 billion in 2013-14 with of over $10.2 billion.

"We expect the forthcoming to lead to creation of a favourable and stable policy environment to boost industrial revival and enable growth in domestic auto sector," President Ramesh Suri said.

The association also demanded allowing input credit on diesel. "Due to power shortage manufacturers have to resort to generating their own power though gen-sets thus increasing the cost of production. has recommended that such manufacturers be allowed to avail input credit on diesel procured for internal power generation.

First Published: Mon, January 12 2015. 19:06 IST