Aluminium producers urge govt to raise import duty on scrap to 7.5%
They have also sought maintaining the duty on primary aluminium imports at the current rate of 7.5 per cent or a marginal rise to 10 per cent.
Aluminium producers have made a plea to the government to increase import duty on aluminium scrap to 7.5 per cent from present 2.5 per cent in the upcoming budget.
They have also sought maintaining the duty on primary aluminium imports at the current rate of 7.5 per cent or a marginal rise to 10 per cent.
The move would discourage the influx of sub-standard materials and safeguard the domestic industry which provides livelihood to over 10 lakh people.
In its representation to the finance minister, the Aluminium Association of India (AAI) has asked the government to control imports by fixing scrap import duty at par with that on primary aluminium, i.E. 7.5 per cent.AAI has also called for maintaining the duty on primary aluminium imports at the current rate of 7.5 per cent or a marginal rise to 10 per cent, encompassing downstream products as well, in order to protect the domestic market from inundation of cheap imports.
Despite sufficient domestic production, primary aluminium imports continued to rise, registering 30 per cent increase year-on-year, driven by imports from China and free trade agreements with ASEAN and the Middle East countries.
This influx hampers the viability of MSMEs in downstream production as well.
"Imports fulfilled 55 per cent of the country's aluminium demand in FY24, while the share of domestic producers plummeted from 60 per cent in FY11 to 45 per cent in FY24.
Alarmingly, low-quality foreign scrap, which poses safety and environmental risks, has spiralled upwards from 472 kt (kilo tonnes) in FY11 to 1,768 kt in FY24, which is a whopping increase of 274 per cent," AAI said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
08:36 PM IST