Budget 2016: FM Arun Jaitley proposes hike in basic customs duty on aluminium

KOLKATA: The FM has proposed to raise basic customs duty on aluminium and aluminium products by 2.5% as part of the budget recommendations, in a move aimed at reining in the surge in imports that has flooded the domestic aluminium market. The duty on zinc alloys too has been raised to 7.5% from the present 5%. On the other hand, export tax on bauxite has been reduced fro 20% to 10% in the budget.

As part of the budget proposals, basic customs duty on primary aluminium will be raised to 7.5% from 5% percent and on aluminium products from 10% from 7.5%. The finance minister Arun Jaitley said during his budget speech on Monday. The aluminium industry has been clamouring for a duty hike in the wake of a flood of cheaper imports from countries like China. According to the industry's estimates, imports constitute 56% which is more than half of all aluminium consumption in the country.