Mumbai: The Dyestuffs Manufacturers' Association of India (DMAI) has submitted a pre-budget proposal to finance minister P Chidambaram, outlining their expectations from Budget 2008-09.

The letter features elaborate views and suggestions, which are most likely to assist overall development of the industries in India. The overview of DMAI's wishlist from the budget this year includes zero per cent duty on all types of fuels, lowest possible duty rate on basic building blocks, moderate duty rate on Intermediates, and high duty rate on finished products to facilitate exports of value added products, while importing basic products of low value.

The association also wants the finance minister to revise duties on basic feedstock raw material and naphthalene-based finished products as per its recommendations, with crude naphthalene recommended at 2.5 per cent, refined naphthalene also at 2.5 per cent, and beta naphthol / BON Acid / Alpha Naphthol at 7.5 per cent.

Additionally, it also wants duty drawback rates must be increased to at least the level of present DEPB rates of 5 per cent.

The association also wants import duties on dyestuffs to be at least retained at the present levels, if not reduced, to allow producers to compete with imported products, since parameters such as high costs of utilities like power, fuel, water, and octroi levies in some states, coupled with the high rate of interest on finance make local firms uncompetitive.

The association also wants no anti-dumping duty, and some form of protection on raw materials used by dyestuff industry, as ''we have to compete with China.''

The industry wants the government to encourage plant modernisation programs, as an an ongoing process, by way of increasing the depreciation rate to 35 per cent.

It has also called for the abolition of fringe benefit tax, which is presently applicable on many items like entertainment, gifts, guesthouse maintenance expenses, conferences, sales promotion, conveyance, local & foreign tour and travel expenses etc. These are genuine expenses necessary to conduct and promote business, and given the fragmented nature of the industry, with a dominance of small scale enterprises, this tax has increased expenses for firms by way of man power cost, and audit fees. The association contends that this tax should be applicable to firms with turnovers in excess of Rs50 crore.