Budget wishlist: Scrap recycling sector seeks cut in import duty, GST

Budget 2019

The metal recycling industry has urged the government pare the import duty on metallic scrap, its sole raw material, to nil from the existing 2.5-5 per cent.It also wants a reduction in goods and services tax (GST) to five per cent from the existing 18 per cent, in order to provide a level playing field with domestic primary metal producers who enjoy duty-free import of finished products under the Free Trade Agreement (FTA) with various countries.
In a pre-Budget submission to Union Finance Minister Nirmala Sitharaman, the apex industry body, Metal Recycling Association of India (MRAI) president Sanjay Mehta, said, "Since India doesn't generate enough metal scrap, the demand for the same has to be met through import. Most countries in the world Sri Lanka, Nepal, Thailand, Malaysia, Indonesia, Japan etc. have reduced import duty on imported scrap to nil. India remains the only country with an import levy of 2.5-5 per cent on metallic scrap despite the fact that its import conserves domestic natural resources, saves energy and also generates employment."
While import of iron and steel, copper and aluminium scrap currently attracts import duty of 2.5 per cent, brass and zinc scrap suffers five per cent of import tax in India.
At the same time, the government has encouraged primary producers by exempting copper concentrate, the raw material, from import duty. Apart from that, finished products of these ferrous and non-ferrous metals are also imported duty-free under the free trade agreements (FTAs) signed with ASEAN and other countries to boost regional and bilateral co-operation.

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