Govt waives customs duty on imports of certain raw materials

The government has waived customs duty on some raw materials imports, including coking coal and ferronickel used in the steel industry, which will reduce the cost for the domestic industries and reduce prices.

To increase the domestic availability of coal, the duty on iron ore exports has risen to 50%, and a few steel intermediaries to 15%.

The duty on the import of ferronickel, coking coal, and PCI coal has reduced from 2.5%, while the duty on coke and semi-coke has been dropped from 5% to nil.

The tax on the export of iron ores and concentrates increased to 50%, from 30%, while 45% on iron pellets.

Duty on pig iron and spiegeleisen in pigs, blocks and other primary formats, including flat-rolled products of iron or non-alloy steel of 600 mm or more, hot-rolled, not clad, plated or coated, flat-rolled products of iron or non-alloy steel of 600 mm or more, cold-rolled, not clad, plated or coated, flat-rolled products of iron or non-alloy steel of 600 mm or more, clad, plated, or coated has increased to 15% from nil.

Another 15% duty has been imposed on flat-rolled products of stainless steel of 600 mm, other bars and rods of stainless steel, angles, shapes and sections of stainless steel, bars and rods, hot-rolled, wound coils, of other alloy steel.

Minister of Finance, Nirmala Sitharaman, said that customs duty changes in raw materials and intermediaries for iron and steel would lower their prices.

Apart from the duty on raw materials imports, used in the plastic industry has also been lowered to reduce the cost of domestic manufacturing.

The import duty on naptha has been reduced to 1%, from 2.5%, while the duty on propylene oxide has dropped to 2.5%.

Additionally, the import duty on Polymers of Vinyl Chloride (PVC) has reduced to 7.5%, from 10%.

Senior Partner of AMRG & Associates, Rajat Mohan, said that a steep reduction in import duty on such products would result in high inflation.

He added that global economies are ailing due to increasing debt and high inflation. The government has taken several measures to provide relief from the high prices of petrol, diesel, coal, iron, steel and plastic.

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