India govt. needs to reduce basic customs duty on the critical raw materials for aluminium production: PHDCCI

The proactive National Apex Chamber working at the grass-root level and with strong national and international linkages, PHD Chamber of Commerce and Industry (PHDCCI) has urged govt. of India to brush up on the cost structure of the Indian aluminium industry and boost competitiveness in the upcoming Union Budget 2022.

However, Nirmala Sitharaman, the Finance Minister of India is scheduled to present the Budget 2022-23 by the next month.

PHDCCI, the chamber that acts as a catalyst in the promotion of industry, trade and entrepreneurship has recommended in its pre-Budget memorandum to reduce 2.5% of the basic customs duty on the critical raw materials like - Calcined Petroleum Coke, Raw Petroleum Coke, Caustic Soda Lye, Aluminium Fluoride and Green Anode/ Pre-Baked Carbon Anode.

The PHD Chamber of Commerce and Industry has also requested for eradication of cess on coal (GST Compensation cess of INR 400/MT) to support the high power-intensive aluminium industry.

The trade and industry body has also sought the government to increase the basic customs duty on Aluminium scrap (HS Code 7602) at par with primary metal to proposed 10%.

“The inverted duty of Caustic Soda Lye to be rationalized and reduced from 7.5% to 2.5%, the inverted duty of aluminium fluoride to be rationalized & reduced from 7.5% to 2.5%,” PHDCCI has urged among other Pre-Budget Memorandum for the sector.

It further added, “Being the primary raw material, the import duty on alumina should be rationalized and reduced from 5% to nil to enhance raw material security for the aluminium industry, encourage domestic value addition and exports of finished aluminium products”, said PHDCCI.