In its pre-budget memorandum, FICCI – the largest trade body in India has demanded an end to the adverse tariff regime in the petrochemical sector.
This adverse tariff regime is one the main reasons for the low investment in the capital intensive petrochemical industry, FICCI said.
Citing the case of China, it said, China provides 5.5 percent differential tariff between naphtha and polymers. This acted as an inducement for investors.
It has proposed that the government reduce tariffs on naphtha, ethylene, propylene and aromatics feedstock from five percent to nil and increase tariff on paraxylene from nil to two percent.
Fibre2fashion News Desk - India