Budget 2013: Bring customs duty on scrap at par with aluminium customs duty, says FICCI.

NEW DELHI: Federation of Indian Chambers of Commerce and Industry (FICCI) has proposed a memorandum for bringing the basic customs duty (BCD) on aluminium scrap at par with the duty on aluminium products in Budget 2013.

At present, basic customs duty on aluminium products is at to 5 per cent, while duty for aluminium scrap is nil. FICCI highlighted the fact that most of the aluminium downstream products can be made using both scrap and primary aluminium. "Therefore, the differential duty structure is leading to a substitution of primary aluminium by scrap," says FICCI.

Steep surge in imports of scrap has led to market diversion and is having adverse impact on Indian aluminium industry. Reeling under the pressure of increased cost, industry representatives feel that it is very important to raise the bar for customs duty on scrap in order to save the domestic industry from further losses.

Finance Minister, P Chidambaram will be presenting a union budget for the fiscal year starting in April, later this month, which analysts see as a key test of commitment to shoring up finances.


Source : economictimes.indiatimes.com