ISSDA’s President Wish List for Upcoming Budget FY16

President of Indian Stainless Steel Development Association (ISSDA), NC Mathur has floated its wish list for the upcoming Union Budget FY16.

Mr. Mathur has an opinion that viability of Stainless Steel sector is severely affected by various anomalies in taxes and import duty structure. This is turn has put Stainless steel companies under severe financial stress. In order to lessen their burden, Mr. Mathur has urged the government to rationalize or scrap the import duty on products, as per the requirement.

Wish List for Budget FY16

1. Import Duty on SS Flat Products should rise: Duty on import of SS Flat products should rise to 10% from current 7.5%. Other countries like China and Brazil have a duty of 10% & 14% respectively on import of these products.

2. Scrap Duties on Raw Materials:

• Duty on Manganese, Chrome, and Molybdenum ores, hydroxides and other salts need to be scrapped from current duty of 2.5%
• Due to limited availability of Nickel, duty on it should be abolished
• 2.5% duty on Coking coal import should be removed
• As Iron ore is the key raw material for steelmaking, the import duty of 2.5% should be scrapped
• Duty on Stainless steel need to be scrapped from 2.5% to nil
• Peak rate of Basic Custom Duty should be surged from 10% to 25% for the steel sector

These measures will support the Indian steelmakers to create a level-playing field in relation to Chinese manufacturers, who are enjoying subsidies and state protection in multiple ways. Furthermore, domestic manufacturers will be able to utilize capacities, which are lying idle.