Leading softdrink manufacturers like Coca-Cola and Pepsi on Friday asked the government to abolish eight per cent special excise duty on aerated soft drinks to help them bring down prices.
Under the aegis of Indian Softdrink Manufacturers Association, cola companies submitted a memorandum to Finance Minister P Chidambaram on the same.
"The industry, therefore, requests that SED on aerated soft drinks be removed in Union Budget 2004 and brought on par with other food and beverage categories," it said.
Food and beverage categories other than soft drinks do not attract the eight per cent SED.
The softdrink industry continued to be a subject of high excise duty of 24 per cent, which included eight per cent SED, the association said.
"We are convinced that excise duty reduction and its consequent impact on pricing structures will stimulate growth in the soft drink industry, which as you (Finance Minister) know is highly employment intensive and has a huge revenue potential for the government," it said.
Five years back, the then government had committed to do away with SED on all items of mass consumption and the same had been implemented for all food products with the exception of aerated soft drinks.