Mining industry urges Centre to hike import duties

14 Nov 2022 CW Team

India's mining industry has demanded higher import taxes on metals such as zinc, copper and aluminium to help halt a tide of cheaper imports, especially from China. The Federation of Indian Mineral Industries (FIMI) has addressed a note to the Finance Ministry saying the government should raise import taxes to 10%-15% on several aluminium products, including scrap to 10% from 2.5%.

India is the world's third-biggest primary aluminium producer. Its aluminium producers are expected to raise their combined production capacity to 4.6 million tonnes in the next two years, up from 4.1 million tonnes now.

During the fiscal year to March 2023, India's aluminium demand is expected to reach 4.2 million tonnes. It imported 2.3 million tonnes of aluminium in the previous fiscal year.

“The major threat of imports is from China, which constitutes over 85% share of downstream aluminium imports,” FIMI said in the note to the ministry as it prepares the 2023/24 Union Budget, due to be announced in February. The federation said most metal scrap imports were coming from Britain, Saudi Arabia, the United States, and the United Arab Emirates.

The FIMI also urged government to raise import taxes on intermediate and finished goods of copper and zinc ingots to 7.5% from 5%.

FIMI also reiterated its demand to scrap an export tax on low-grade iron ore lumps and fines - with iron content below 58%. The tax was raised to 50% from zero in May.

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