Posted on 19 Jun 2015
Industry slams 2.5% hike in customs duty on steel products
Industry has condemned 2.5% increase in basic customs duty on steel products.
Avtar Singh, president, CICU, in a statement released on Thursday, said
this would further affect the industry reeling under crisis.
Custom duty on flat products of steel such as hot and cold rolled
(HR/CR) sheets and coils has been raised from 7.5% to 10% and on long
products of steel like TMT bars, angles and channels has been revised up
words 5% to 7.5%.
Upkar Singh Ahuja, general secretary, CICU,
said instead of seeking protection, Indian steel makers should manage
their costs and upgrade their efficiency rather than demanding relief
from customs duty hike at the cost of MSME industry which is currently
battling sluggish markets and squeezed margins.
He further said
that MSME sector is the mainstay of our industrial economy and has been
contributing significantly toward the gross domestic product and
generation of employment avenues. The need of the hour is to strengthen
this sector, so that it can face challenges boldly.
He said the
hike in steel prices is indeed a cause of worry, which will further
erode the profit margins and thereby reduce the incentives for expending
industrial activity in the country. This increase has put MSME Sector
at stake by eating away their sizable working capital funds. Exporters
will be hit hard due to inability to keep their commitment with foreign
buyers.
They appealed and urged upon Prime Minister Narendra
Modi, finance minister Arun Jaitley and steel minister Narendra Singh
Tomar to roll back customs duty hike on steel products immediately for
survival of steel consuming industry which is already reeling under
adverse economic scenario.
