Mangalore, Jun 10 (KNN) With the increasing raw material prices, the plastic manufacturers of the state of Karnataka have sought a hike in the central excise exemption limit to Rs 5 crore from the existing Rs 1.5 crore, which they say is not enough to compete with Chinese products.
In a pre-budget memorandum, the Canara Plastic Manufacturers Association has urged Union Finance Minister Arun Jaitley to enhance the Central Excise Exemption limit to Rs 5 crore to encourage the MSMEs.
According to the association, the present level of Rs 1.5 crore was not enough for MSMEs to face the competitiveness of Chinese manufacturers.
They said that the limit had been fixed in 2007 and after that because of inflation the prices of raw materials have gone up, according to a media report.
Under the provisions of the Central Excise Act a small scale industry is one whose aggregate value of turnover does not exceed Rs 150 Lakhs made on or after the 1st day of April in any financial year.