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MRAI Urges Centre To Remove Custom Duty On Metal Scrap In Union Budget 2023

With the preparations of the Union Budget 2023-24 underway, various sectors from across India have started talking about their expectations from the Union Finance Minister Nirmala Sitharaman. The Material Recycling Association of India, the apex body of the Recycling Industry of the country, has called for the removal of basic custom import duties and taxes along with policy measures to boost the growth of the industry. 

According to the official statement issued by the MRAI, the recycling industry plays an important role in the overall growth of the country. Building a more sustainable economy will help to reduce the greenhouse gas emissions that cause climate change. Therefore, driving sustainable growth is a critical priority for the Government of India.

The president of MRAI Sanjay Mehta said, “MRAI hopes that the government will continue with the existing zero percent duty on ferrous scrap import till we generate a sufficient quantity and quality of scrap from the domestic market.” He added that this will help to create a level-playing field for Indian Recycling Industry in the global arena.

MRAI has urged the government to make the rational zero percent basic customs import duty levied on metal scrap, which is the key raw material of the secondary metal manufacturing industry and accounts for almost 40 to 45 percent of total India’s production.

“Removal of basic customs duty on metal scrap will provide a big boost to the MSME units of the recycling industry,” Mehta further added. 

“Hence, we urge the government to review the Inverted Duty Structures to offset Import duty on Metal Scrap. If it is not possible to amend the FTA, kindly provide us the duty-free imports to Indian manufacturers so that there is a level playing field for both. The move will also benefit other industries in the micro, small and medium enterprise (MSME) sector that uses metal for finished products in various downstream applications such as infrastructure and auto components,” said Mehta. 

He further emphasized that the removal of basic customs duty will offer a unique window of opportunity to decouple growth from resource requirements.

The material recycling sector spans several industries including metals (both Ferrous & non-Ferrous), Plastic, Paper, Waste & E-waste, Tyre and Rubber, Glass, Automobile, Building  and Construction and Water.


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