JK Tyre slashes tyre prices
Country's leading tyre maker, JK Tyre and Industries Limited has decided to pass on the entire benefit of tax reduction announced in the Budget to the consumers by reducing tyre prices.
In an official release, the company has announced a reduction in prices after the reduction in Cenvat duty from 16% to 14% in Budget 2008 yesterday.
The company has reduced the prices of car tyres between Rs 20 - 40 and heavy vehicles' tyres between Rs 150 - 170. The price reduction will be applicable for the entire range of the company's products i.e. truck bias, truck radial, LCV radial, LCV bias, car radial, car bias and farm tyres.
The reduction will be effective from March 1. Finance minister P Chidambaram on Friday proposed a cut in the general CENVAT rate on all goods from 16 per cent to 14 per cent.
It is anticipated that MRF and Ceat will also cut prices by about 1-2 per cent after the finance minister proposed to reduce a duty in the Budget 2008/09 to boost manufacturing.