Aluminium Ind Seeks Rise In Import Duty On Scrap

New Delhi: The aluminium industry has asked the government to increase the import duty on primary, downstream aluminium and has also sought rise in customs duty on aluminium scrap to put curbs on low-quality scrap inflow into the country. The development assumes significance as the surge in primary aluminium and low-grade scrap imports, particularly from countries with excess capacity like China, has disrupted the domestic market and deterred investment in local production. In its pre-Budget recommendation to the government, the Aluminium Association of India (AAI) suggested raising import duty on primary aluminium to 10 per cent from 7.5 per cent, downstream aluminium to 12.5 per cent from 7.5 per cent, and raising aluminium scrap duties to 7.5-10 per cent from 2.5 per cent.

Meanwhile, Federation of Indian Mineral Industries (FIMI) has also asked the government to raise primary/downstream aluminium import duties to 12.5 per cent, along with increasing aluminium scrap duties to 7.5 per cent or higher from 2.5 per cent. High duties on essential raw materials have created an inverted duty structure, adding costs for domestic aluminium producers, the industry said.