New Delhi, July 19: The government today said it is considering cutting import duty on natural rubber, a long pending demand of tyre manufacturers.
"Yes, I have seen requests ... we are thinking about it," Commerce Secretary Rahul Khullar said when asked whether the government is considering the industry's proposal to reduce import duty on natural rubber.
At present, customs duty on natural rubber, the main raw-material for tyres, is 20 per cent, whereas the customs duty on tyres (the finished product) is 10 per cent.
The tyre industry has been demanding a reduction in import duty on natural rubber from the current 20 per cent to 7.5 per cent in view of high domestic prices, which have been ruling in the range of Rs 170-180 a kg. In the global market, prices of natural rubber (RSS-3 variety) are ruling at Rs 153.73 per kg.