The government is expecting a revenue loss of Rs 10,000-15,000 crore annually due to the recent recalibration in customs duty on iron and steel and plastic, an official said on Monday. The government, with effect from May 22, waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will lower the cost for the domestic industry and reduce the prices.
The duty on the import of raw materials used in the plastic industry has also been reduced to lower the cost of domestic manufacturing.
Also, to increase domestic availability, the duty on exports of iron ore has been hiked up to 50 per cent, and a few steel intermediaries to 15 per cent.
"The revenue loss on account of these customs duty rationalisation is expected to be around Rs 10,000-15,000 crore," an official said. The customs duty changes in raw materials and intermediaries for iron and steel and plastic were aimed at reducing their prices and also lowering the cost of domestic manufacturing.
Source Name:-Economic Times