The Material Recycling Association of India (MRAI) has reportedly urged the government to waive the 2.5 per cent import duty on aluminium scrap, following the Aluminium Association of India's demand for a rise in the same tariff to 7.5 per cent. Although AAI and MRAI's appeals are contradictory, both have come ahead of the Union Budget 2024.
MRAI has made the elimination request, highlighting the critical role of recycled aluminium in reducing carbon emissions and stimulating a circular economy.
MRAI President Sanjay Mehta emphasised, "India's aluminium recycling industry plays a pivotal role in harmonising efforts to combat climate change and bolster environmental sustainability."
He further asserted that recycling aluminium also reduces the usage of raw materials and protects natural resources like bauxite.
The association said that removing the import duty would benefit the Indian aluminium recycling industry in many ways, considering that the industry is heavily dependent on high-quality imported scrap to meet domestic shortfalls.
According to Dhawal Shah, Senior Vice President of MRAI, duties on imported aluminium in a way affect sustainability goals. He said, "Having import duties on aluminium scrap could be retrograded and would decelerate our efforts in reaching sustainability goals."
The MRAI's appeal for zero duty extends beyond aluminium and covers copper, brass, zinc, and lead scrap.
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