Govt scraps duties on imported cement

With cement companies refusing to cut prices, the government on Tuesday abolished all duties on import of portland cement and said it is open to reviewing dual excise structure announced in the Budget 2007-08 to make the construction raw material cheaper in domestic market.

The existing 16 per cent countervailing duty and four per cent additional customs duty on portland cement have been removed with immediate effect, Central Board of Excise and Customs spokesperson Hemambika Priya said.

The government had in January exempted portland cement (other than white cement) from basic customs duty of 12.5 per cent. With today's measure, import of portland cement is made completely duty-free.

To a query, the CBEC spokesperson denied that the government move was aimed at pressurising cement makers to moderate prices. It did not mean that the government would not have a rethink on dual excise structure in cement announced in the Budget 2007-08, she said.

"We are not putting any pressure (on cement makers). The government is open to revisit the dual excise duty structure," she said.

Meanwhile, an official statement said the government has already invited cement manufacturers to come forward with proposals to moderate cement prices.

"Government expects that the cement manufacturers, in the larger interest of consumers and for checking inflation, will take appropriate measures for moderating prices," the statement said.

With imports of cement made duty free, moderation in cement prices will depend on the increase of imports. At present, imports are insignificant, the spokesperson said.