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Home arrow Automotive arrow Metals industry welcomes import duty cut & export duty hike
Metals industry welcomes import duty cut & export duty hike Print E-mail
Written by Hari   
Saturday, 01 March 2008
New Delhi: Import duties on scrap metal were abolished and export duty on chrome ore were increased in the budget presented on Friday. This comes as a relief to the smaller industries which were suffering from soaring raw material prices.

No change has been effected in the peak rate of customs duty in the General Budget 2008-09. Customs duty has been reduced for certain industries with a view to provide a fillip or to remove anomalies.

Customs duty on project imports has been reduced from 7.5 per cent to 5 per cent. However, a special CVD of 4 per cent would be imposed on some specified projects in the power sector.

The duty on steel melting scrap and aluminium scrap reduced to nil from 5 per cent.

In order to conserve chrome ore and make it available for value added manufacture in India, export duty on this item has been raised to Rs.3000 per MT from Rs.2000 per MT. Chrome ore is used in making ferrochrome, which is used to make stainless steel.

However the export duty on iron ore has not been increased (300 rupees per tonne on high grade iron ore and 50 rupees per tonne on low grade ore). This is not good news for the Steel makers. Chidambaram did not mention iron ore at all, says an industry source.

The general rate of excise duty was cut to 14 percent from 16 percent.

 
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