The major players of the Indian Aluminium industry body have solicited a top tax refund rate of 12-13% under a suggested export scheme, emulated to the 2% receivables under the existing one.
The Aluminium Association of India adds up Hindalco Industries, Bharat Aluminium Company, National Aluminium Company and Jindal Aluminium Ltd among its members.
The Indian Aluminium producers lobby pledged the commerce and industry ministry for an initial 5% refund rate, eventually going up to 12-13%, adducing the high burden of un-rebated taxes and duties, which are about 15% of production cost.
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India’s top aluminium exports incorporate unalloyed and alloyed aluminium ingots, billets, slabs, wire rods and plates. However, the nation has exported aluminium products worth $5.5 billion in the previous fiscal year.
The Government of India had requested the industry to come up with refund rates for various sectors.
“The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme rates will be decided after consultations among the ministries of commerce and industry, finance, respective line ministries and industry,” a government official said.
Presently, the Indian exporters are covered under the Merchandise Export from India Scheme.
As per an industry representative: “Indian exports are suffering due to the measures taken by the US to impose 10% tariffs on aluminium imports and granting exemption to Australia, Argentina, Canada and Mexico, which constitutes almost 50% of the US’ aluminium imports.”
“Chinese companies have cornered more than half of the global market share in aluminium due to the large subsidies given by its government”, he added.
Additionally, while the US withdrawing the Generalized System of Preferences (GSP) benefits to India, India’s aluminium exports are now subject to an additional 2.6-6% duty over and above the 10% tariffs, while the same product from Canada, Mexico, Argentina and Australia are imported into the US at zero duty.
Rahul Sharma, president of the Aluminium Association of India said: “Being in the government’s priority list, fast-track implementation of the RoDTEP scheme for aluminium will boost exports by reducing the burden of un-rebated taxes and duties and entail global cost competitiveness in international markets.” The Union Cabinet had approved RoDTEP in March’20.
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