Leading a protest rally in New Delhi against the government's decision to charge excise duty on maximum retail price, IDMA said it will lead to small and medium companies shutting down.
"Ever since the notification came on January 7, many companies are either shifting to excise-free zones in Himachal Pradesh and Uttaranchal and those which cannot have shut their factories," said S R Vaidya, co-chairman SSI Committee, IDMA.
"While the bigger companies are able to pass the impact of 16 per cent excise duty to customers, smaller companies are unable to do so. This has created a disparity," he said, adding the government should create a level playing field. IDMA also regretted that the ministry of chemicals and fertilisers has been non-committal on their demand.
"We have met the minister today but he was non-committal on the issue as it involved tax and has passed the matter to the finance ministry," he added.
As a next step to press for their demand, IDMA said it would seek an appointment with the finance minister to press for their demand.
