Aluminum industry seeks to reduce basic tariffs on critical raw materials

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The domestic aluminum industry has sought to reduce basic tariffs and correct the reverse tariff structure on critical raw materials, including petroleum coke, caustic soda, aluminum fluoride, and alumina, to encourage cost competitiveness in the sector.

The national aluminum industry, under the representation of the Aluminum Association of India (AAI), has requested immediate government support under the next Union budget 2022-2023.

He also called for an increase in the basic tariff rate for aluminum and items from 10 to 15 percent in line with the steel sector, according to the IAA’s pre-budget expectations.

An increase in the basic tariff on primary aluminum from 7.5% to 10%, aluminum scrap from 2.5% to 10% and downstream aluminum products from 7.5% to 10% were also requested, he added.

The primary aluminum industry is seriously threatened by the increase in imports of aluminum and scrap metal.

The share of scrap metal in total imports increased from 52 percent in FY 2016 to 71 percent in the first half of FY 22, resulting in an outflow of US $ 2 billion (15,000 crore Rs) per year.

The IAA has requested an increase in import duties on aluminum scrap to the same level as primary aluminum (10% proposal), in order to encourage national recycling of local scrap metal and promote a circular economy .

The association called for the elimination of the high coal tax (Rs 400 / MT) to help the energy-intensive aluminum industry ease its burden.

The high consumption of coal needs to be rationalized to support the industry and the same has been recommended by various government ministries and think tanks including NITI Aayog, Ministry of Mines, Ministry of Coal and Ministry of Energy, among others.

The GST offsetting tax on coal under the GST regime was only to be collected for the first five years, from July 1, 2017 to July 1, 2022.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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