The century-old Indian trade association, Associated Chambers of Commerce and Industry of India (ASSOCHAM), has lobbied for a decrease in the basic customs tax and correction of the inverted duty structure on crucial raw materials for the aluminium industry since high import charges are a big disadvantage for the sector that is largely dependent on imported raw materials.
According to Assocham's pre-Budget note for 2023–2024, high import duties on raw materials make Indian finished goods more expensive and uncompetitive in global markets, providing little protection against cheaper finished product imports and inhibiting domestic value addition within the nation.
The organisation representing the interests of trade and commerce in India, Assocham, said, "Indian aluminium producers have some of the highest average production costs in the world, primarily because of the high incidence of unrebated Central and State taxes and tariffs on inputs/raw materials, which account for 18–20% of the cost of aluminium production.”
The fundamental customs duty on essential raw materials should be decreased in an effort to reduce the cost structure of the Indian aluminium sector and increase competitiveness.
The trade group has asked for the basic customs duty on products, including calcined petroleum coke, caustic soda lye, green anodes, and pre-baked carbon anodes, to be reduced from 7.5 per cent to 2.5 per cent and from 10 per cent to 2.5 per cent respectively.
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