Favouring reduction in the central excise on cement, the industry ministry has asked the manufacturers to submit their proposals seeking relief in the coming budget.

"If cement production and demand have to increase, the duties have to be rationalised," department of industrial policy and promotion secretary Ajay Dua said at the annual session of the cement manufacturers' association in New Delhi on Thursday.

The DIPP had taken up the issue last year with the finance ministry, he said.

"We are certainly willing to support rationalisation of central excise duty on cement and it should not continue at the current level," he said.

He pointed out that about 30 per cent of the sale price is accounted for by the central and state taxes as against 20 per cent in China and 10 per cent in Malayasia.

"Taxes need to be brought down to the level of China," Dua said. The support was much more required in case of Portland Pozzolana Cement where use of fly ash is more than 20 per cent, Dua said.

The secretary asked the industry to submit its proposals to DIPP within 3 to 4 days so that it could be taken up further with the finance ministry.

On the issue of extraordinary rise in prices, he said the increase must be gradual and in line with rise in raw material prices. He asked the industry to find resources, other than internal surplus, to fund its expansion plan.

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