The Hindu Business Line : Steel association pitches for duty restructuring

Pre-Budget memorandum
Tax burden must be brought down to 15 per cent in 15 years
Excise duty should be on normal selling price ex-factory gate
Government urged to maintain status quo on import duty

New Delhi , Dec. 20

The Indian Steel Alliance (ISA) has proposed sweeping changes in Customs duties on all inputs used in steel making as well as a complete overhauling of excise duties for products manufactured by user industries in its pre-Budget memorandum submitted to the Government.

The association has argued that such a move would increase competitiveness of the industry as well as lead to increase in the per capita consumption of steel in the country.

The ISA has also suggested that it could help in bringing down the cost of infrastructure projects as steel accounts for a substantial percentage of cost for all infrastructure building exercise.

Stating that the current indirect tax incidence on most of the products is in the range of 30-35 per cent, it says that the country should aim for reducing the overall tax burden below 15 per cent in the next five years.

The association also points out that the past track record of surge in tax collection (which is currently growing at 17 per cent) suggests that the Government has enough room to reduce overall indirect taxes on commodities without affecting its revenues.

Apart from duty restructuring, the ISA has also demanded that for integrated steel manufacturers, excise duty should be on the normal selling price ex-factory gate and transportation cost and distribution charges at depots should not be included to prevent stockyards to be considered commercially unviable.

It has also urged the Government to maintain status quo on import duty on steel.

More Stories on : Steel | Excise and Customs | Budget

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