Budget 2013: Reduce excise duty on aluminum products, says FICCI
Under the circumstances, excise duty on aluminum extrusions should be reduced from 12% to 8% in order to encourage the use of aluminum products in day-to-day life.
NEW DELHI: Federation of Indian Chambers of Commerce and Industry (FICCI) has pitched for reduction in excise duty on aluminium products from existing 12 per cent to 8 per cent in Budget 2013 to encourage the use of aluminum goods.
"The price of aluminum metal in India is the highest in the world, primarily due to the high customs and central excise duties. A steady decline in consumption of aluminum has been witnessed due to high price of aluminum commodities across the country during past 5-6 years, said FICCI.
FICCI also noted that unless aluminium is made available at an affordable price to people, other substitutes such as plastic, wood etc. would continue to threaten the environment.
The industry body has also recommended exemption of excise duty on aluminum irrigation pipes and tubes with an aim to benefit farmers and contribute towards agricultural production. With sky rocketing prices, the farming community has shifted from aluminum extruded agricultural pipes to the cheaper PVC pipes, even though aluminum pipes have longer life and high re-sale value.
Finance Minister, P Chidambaram will be presenting a union budget for the fiscal year starting in April, later this month, which analysts see as a key test of commitment to shoring up finances.