The Hindu Business Line : CII plea to cut import duty on inputs for metal industry

THE uniform customs duty imposed on imported raw materials used by the non-ferrous metal industry such as copper, zinc, unwrought products such as cathodes, wires and bars, ingots and billets vis-a-vis finished materials like wrought copper products, as proposed in the Union Budget for 2003-04, may lead to import of finished products in preference to products manufactured in the country.

Anticipating this, the Confederation of Indian Industry (CII) has suggested that unwrought copper, zinc and other metal products (raw materials) should bear a customs duty of 10 per cent instead of 25 per cent as proposed in the Budget.

Moreover, the excise duty on light diesel oil (LDO) has been increased by Rs 1.5 per litre, disallowing CENVAT credit in respect of duty paid on LDO. Since the non-ferrous metal industry is located in parts of the country where there is acute power shortage, higher excise duty on LDO will add to costs and will be a significant burden on them.

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