JK TYRE announces price cut
By Our Corporate Bureau | 07 Mar 2005
Mumbai: JK Tyre has announced a price cut of 2 per cent to 4 perm cent across various product categories, consequent to changes in excise duty in the Union Budget.
Expressing his views on the revision of tyre prices, Arun K Bajoria, president, JK Tyre, said, "This is a welcome measure and had been sought by the tyre industry for a long time as the reduction in prices will benefit truck, bus, car and other tyre consumers. The reduction in the peak rate of customs duty from 20 per cent to 15 per cent, bringing them closer to the Asian levels, is no doubt a progressive step forward but should have been done in steps keeping in mind the high cost of infrastructure that the Indian Industry has to encounter more so as compared to Asian countries."
He further added, "It is indeed surprising that the import duty on natural rubber continues to be 20 per cent, whereas the import duty on tyres under the Bangkok Agreement and other FTAs effectively comes to only 10 per cent. The impact on corporate profits is a matter of concern as the net tax payable by the companies due to change in depreciation despite the tax reduction will go up by around 5 per cent."
