Budget 2019: Government Hikes Customs Duty On Stainless Steel Items, Alloy Steel
The government proposed to increase customs duty on stainless steel products by 2.5 percent to 7.5 percent. The current customs duty on stainless steel products is 5 percent.
The proposal was made by Finance Minister Nirmala Sitharaman in the Budget 2019-20. It was also proposed to increase duty on other alloy steel and wire of other alloy steel (other than invar) to 7.5 percent from 5 percent at present.
“Changes in customs duty to provide level playing field to domestic industry,” the minister said in her maiden budget speech.
The duty on base metal fittings, mountings and similar articles suitable for furniture, doors, staircases, windows, blinds, hinge for automobiles have also been increased to 15 percent from the current 10 percent.
The announcement assumes significance as industry body Indian Stainless Steel Development Association has been raising concerns that exporters of stainless steel in several countries are colluding with some Indian importers to misuse the provisions of the ASEAN-India free-trade agreement.
In February, ISSDA had said the imports of stainless steel from Indonesia have jumped over eight-fold in the last one year.