Finance Minister Nirmala Sitharaman on Monday, February 1, announced reduction of import duties on several steel items in a bid to provide relief to MSMEs, badly affected by the high cost of raw materials.
FM Sitharaman, in her budget speech, revoked AD (anti-dumping duty) and CVD (Countervailing duty) on certain steel products and reduced duties on copper scrap from 5% to 2.5%.
Proposing to review over 400 old exemptions in customs this year, FM Sitharaman also announced the cutting of basic customs duty on nylon chips and nylon fibre.
"MSMEs and other user industries have been severely hit by a recent sharp rise in iron and steel prices. Therefore, we are reducing customs duty uniformly to 7.5 per cent on semis, flat, and long products of non-alloy, alloy, and stainless steels," she said.
The finance minister also exempted duty on steel scrap until March 2020.
'To provide relief to metal re-cyclers, mostly MSMEs, I am exempting duty on steel scrap for a period up to 31st March, 2022. I am also revoking ADD and CVD on certain steel products. Also, to provide relief to copper re-cyclers, I am reducing duty on copper scrap from 5 per cent to 2.5 per cent,' she said.
FM Sitharaman also announced an increase in duty on steel screws and plastic builder wares from 10 per cent to 15 per cent.