The Federation of Indian Chambers of Commerce & Industry (Ficci), a non-governmental trade association and advocacy group, has reportedly figured out the necessity of higher import duty on aluminium and aluminium products. According to a report, the association has sought at least 12.5 per cent of import duty on the metal and its products in the upcoming budget for FY2023-24.
The reason it has stated for the hike is a gradual surge in subpar aluminium imports into India from the United States, the United Kingdom, Malaysia, and the Middle East.
According to Ficci, the move will help contain foreign aluminium product dumping and encourage domestic manufacturing and recycling. The present import duty on aluminium and aluminium products is 10 per cent, and more than 60 per cent of India’s aluminium demand is being met through imports.
Ficci has also requested ease in duties on several key materials from 7.5 per cent to 2.5 per cent in order to encourage domestic manufacturing, given the fact India has been battling with a slump in global demand, rising logistic costs, a deluge of imports and declining market share.
It has also recommended elimination of cess on coal to support power-intensive industries like aluminium in dealing with high energy costs.
Finance Minister Nirmala Sitharaman will present the Union Budget in the Lok Sabha on February 1, 2023.
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