A snapshot of the Union Budget 2018-19 expectations of Rita Singh, chairman & managing director of Mesco Steel, on key issues
Finance Minister Arun Jaitley will be presenting Union Budget 2018 in Parliament on February 1. While there are several expectations of key announcements for the economy and its various sectors, it remains to be soon whom the finance minister would oblige this time.
Here is a snapshot of the Budget 2018 Expectations of Rita Singh, chairman & managing director of Mesco Steel, on key issues:
1. Reduction of import duty on Coking Coal
a. Currently import duty on Coking Coal is 2.5% and many of the steel companies are dependent upon imported coking coal as the domestic quality is not suitable for the steel industry, due to higher ash content.
b. The import duty to be levied should be NIL as this would in turn help the steel industry to reduce the raw material cost and would increase production
c. During FY18 (April – September), 22.6 MT of coking coal was imported. India’s coking coal imports have increased by 9.9% y-o-y basis
d. The removal of import duty would help in reducing the cost of producing the end product and would help to increase the profitability of steel companies, which would in turn benefit the industry as well as economy as a whole
2. Indian steel companies are also requesting for exemption from Environmental Cess.
3. Removal of import duty on stainless steel scrap:
For the manufacturing of stainless steel in electric furnace, stainless steel scrap is the key raw material. This scrap is not available in India and has to be imported and hence Customs duty on import of scrap may be reduced to NIL from current duty of 2.5%.
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