Aluminium association suggests raising import duty on all products
The association suggested raising import duty across all aluminium products in a range of 2.5-5%Aluminium imports witnessed huge surge in recent years primarily from China
PremiumAluminium Association of India has suggested the government to restrict import of the metal by raising basic customs duty across all products. The recommendations were made to be incorporated in the upcoming Union Budget for the financial year 2020-21.
The association suggested raising import duty across all aluminium products in a range of 2.5-5%. “Despite sufficient domestic capacity, 60% of India’s demand is being met through imports," it said in a said.
Aluminium imports witnessed huge surge in recent years primarily from China, Association of Southeast Asian Nations (ASEAN) and West Asia that have surplus aluminium capacity, the association added.
“These countries support their aluminium industry and provide concessions/subsidies with low interest rate loans, cheaper power tariffs, preferential gas allocation, raw materials availability, tax benefits and export tax incentives bringing down the production costs to render competitiveness for their domestic industry," the association said.
India’s aluminium industry has sought increasing import duty on aluminium scrap at par with primary aluminium metal “to encourage recycling of domestic scrap and restrict increasing scrap imports".
The industry body said India’s consumption of scrap is 100% import dependant, despite significant presence of primary aluminium capacity and sufficient scrap available in domestic markets.
“Aluminium scarp imports in India are totally non-essential in nature and should be restricted to encourage domestic aluminium industry and recycling of indigenous scrap. Primary aluminium industry is facing severe threat from the increasing import of aluminium scrap, which constituted around 58% of the total aluminium imports in FY2019-20," the association said.
Additionally, the association has sought support from the government to utilise clean energy cess for funding installation of flue gas desulphurisation (FGD) for operational captive power plants (CPPs). This would enable these plants to comply with the new emission norms.
The association has also demanded elimination of high cess on coal--Rs. 400 per tonne-- to support power intensive industries and retain competitiveness of the domestic aluminium industry.
“The steep hike in coal cess had adversely impacted the sustainability of aluminium industry being a highly power-intensive industry, where coal contributes to 40% of aluminium production cost," the association said.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
