Budget: Steel sector seeks relief in customs duty on key raw materials
The non-availability of this stuff in good high quality and amount hinders the expansion of the metal business, business physique Confederation of Indian Industry (CII) stated in its Budget suggestions for the sector.
The fundamental customs import duty on anthracite coal is 2.5 per cent. The availability of the stated merchandise in “good quality” is declining in the nation and the metal business could must grow to be completely dependent on import of those on a daily foundation, the physique stated whereas suggesting a discount in import duty to nil.
For metallurgical coke, CII has instructed slicing the import duty to 2.5 per cent, from 5 per cent at current.
“Low ash metallurgical coke, HS Code 2704, is a key raw material in steel (making) accounting for almost 46 per cent of the total raw material cost. Reduction in duty will help the domestic steel industry to be cost-competitive,” it stated.
In its suggestions, CII has additionally instructed eradicating the import duty on coking coal.
The duty on import of coking coal at current is 2.5 per cent.
The business physique stated the home provide of coking coal shouldn’t be ample. Hence, to fulfill the home requirement, it needs to be imported. Therefore, the duty needs to be lowered to nil.
“The reduction will also help to rationalise the duty structure on met Coke, which is the end product of coking coal,” it added.
CII additional stated graphite electrode is a serious consumable in metal making. The Indian metal producers are sure to import graphite electrodes as virtually 60 per cent of home manufacturing of graphite electrode is exported, making a scarcity in the home market.
“High duty merely increases the cost burden,” it stated, including that it needs to be lowered to nil from 7.5 per cent at current.
