The government is considering rationalizing Basic Customs Duty (BCD) on various raw materials to provide affordable inputs for the steel sector and boost its competitiveness, according to ET Now. This move comes as part of a broader effort to meet industry demands for cost optimization.
Key Recommendations and Expected Changes:
- Reduction in Basic Customs Duty (BCD):
- Coking Coal: Expected to be reduced to NIL from the current 2.5%.
- Ferro Niobium: Proposed reduction to NIL from 5%.
- Rolls and Refractory Materials: Likely to be reduced to NIL from the existing 7.5%.
- Exemptions under Free Trade Agreements (FTAs):
- BCD has already been exempted on imports of some materials from certain countries under FTAs.
- The industry is urging the government to extend BCD exemptions to all countries to create a level playing field.
- Focus on Aluminium Sector:
- The industry has requested the government to declare RoDTEP (Remission of Duties and Taxes on Exported Products) rates for:
- Aluminium Sector
- Special Economic Zones (SEZs)
- Export Oriented Units (EOUs).
- The industry has requested the government to declare RoDTEP (Remission of Duties and Taxes on Exported Products) rates for:
Strategic Impact: These proposals aim to:
- Ensure affordable access to essential raw materials for steel production.
- Reduce production costs and enhance global competitiveness.
- Support downstream industries and infrastructure development.
This rationalization reflects industry demands and the government’s focus on bolstering the steel and allied sectors as part of India’s broader economic agenda.
