Aluminum industry urges govt to reduce basic customs duty on critical raw materials

The aluminium industry has urged the government to reduce the basic customs duty on critical raw materials like aluminium fluoride, stating that high import duties are a huge disadvantage as they make Indian finished goods costlier and uncompetitive in the international markets.

"To improve the cost structure of the Indian Aluminium industry and enhance competitiveness, it is requested to reduce the basic custom duty on the...critical raw materials," the Aluminium Association of India (AAI) said.

In its suggestions to the government for the upcoming Union Budget 2020-21, the aluminium industry said the basic customs duty on raw materials like aluminium fluoride, caustic soda lye and green anode/pre-baked carbon anode should be reduced to 2.5 percent from current 7.5 percent.

"The high import duties on raw materials is a huge disadvantage for domestic aluminium producers which are heavily dependent on imported raw materials. It results in Indian finished goods (getting) costlier and uncompetitive in international markets, rendering negative protection against cheaper imports of finished products, and discourages domestic value addition within the country," it said.