Clinker import tax hike threatens small, medium-sized producers in Assam, India

Medium and small-sized cement producers in Assam have criticized a proposal by the state government to raise the import tax of clinker by four per cent.

The new proposal will see the entry tax on clinker raised from two to six per cent, applicable only to small and medium units, according to reports in the Economic Times.

Industry sources said the proposal to raise the entry tax would adversely affect the small grinding units in the state. "It will increase the cost of production of the small units by INR7-10 per bag. At present, the small units are already selling cement at a lower rate ' INR25-35 (per bag) less than the cement produced by the large units. Given the budget proposal, there is an apprehension that the small units might not be able to bear the additional cost burden and become unviable," a source said.