AITDF seeks govt intervention in tyre industry

New Delhi, Aug 28: Citing that the prices of automobile tyres and tubes have increased by over 22 per cent in the past seven months, the All India Tyre Dealers Federation (AITDF) has urged the government to examine the present tyre price structure of domestic manufacturers and withhold the recent eight per cent price hike.

The body representing tyre dealers further demanded that the examination price structure be done in a time-bound manner by an independent expert body like BICP.

It added the hike injected in July is unjustified as rubber prices have dropped by 20 per cent.

In a representation made to Union Minister of Commerce and Industry Kamal Nath, the body also said the 16 per cent countervailing duty (CVD) on import of tyres and tubes should be abolished to give level playing field to tyres sold in domestic market, whether local or imported, to protect the tyre dealers from exploitation and tyre users from being fleeced.

The domestic industry has levy of 16 per cent Excise Duty plus VAT on their price but presently imported tyres carry 37.1 per cent multiple import duty including 16 per cent CVD plus VAT. The removal of this duty will benefit the commercial road transport business and hence reduce the truck rentals for the Indian Manufacturing Sector.

The government is duty bound to intervene to discipline domestic tyre industry, which is working in concerted manner, so that the adverse impact of indiscriminate increase in tyre prices do not directly impact the transportation cost of essential commodities and in turn the common man.

UNI