The domestic steel industry has demanded a reduction in initial tariffs on raw materials such as anthracite coal, metallic coke, coking coal and graphite electrodes in the forthcoming budget. In its recommendations for the forthcoming budget for the steel sector, the industry board CII said that the quantity, better quality and adequate availability of these items would affect the growth of the steel industry.
Basic tariffs should be brought down to minus two and a half percent
The industry has suggested reducing the existing basic tariff on anthracite coal from 2.5 per cent to zero. He said the availability of these good quality products in the country is declining. In such a situation the steel industry may have to rely on imports of these products on a regular basis. The CII has recommended lowering the import duty on metallurgical coke from the current 5 per cent to 2.5 per cent.
Import duty is two and a half percent of coking
Horticulture said, “Low ash metallurgical coke (HS code 2704) is the main raw material for making steel. It accounts for 46 per cent of the total cost of the raw material. Coal import duty is two and a half percent.
Higher fees increase corporate spending
The industry board said domestic supply of coking coal was not sufficient. So, it has to be imported to meet the domestic demand. Its fitti should be brought down to zero. According to the CII, graphite electrodes are also used to make steel. Domestic steel companies are forced to import graphite electrodes as about 60 per cent of their production is exported. It is lacking in the local market. The chamber said, “High fees increase the costs of companies. In such a situation, it needs to be reduced from the current 7.5 percent to zero.”