The FM’s proposal to increase basic customs duty on tile and ceramic products to 15% from existing 10% will safeguard the domestic ceramic tile industry from the cheap imports and will strengthen the domestic industry. To address the problem of duty inversion, custom duty on marble slabs is doubled to 40% from 20% currently. Tax reforms and tax simplification measures especially moving to electronic invoice system from January 2020 will significantly reduce the compliance issues.
The budget proposals along with government move last year reducing GST on tiles, marble and granite to 18% slab will give a much-needed boost and provide the tiles and marble industry a level playing field.
Enhanced interest deduction up to Rs 3.5 lakh for purchase of affordable house will translate into a benefit of around Rs 7 lakh to the middle-class home-buyers and help in achieving ‘Housing for All’. Indian Ceramic industry would aim for a green and environment compliant industry and will continue to play an important role in the economic growth in the future and aim for global leadership in the industry and success of ‘Make in India’.