Aluminium makers want duty hike on scrap, abolition of coal cess

Worried over the surge in input costs and the unabated growth in imports of aluminium scrap, the domestic aluminium makers have pitched for a hike in import duty on scrap and abolition of the GST (Goods & Services Tax) compensation cess on coal.

The GST compensation cess is currently charged at Rs 400 per tonne on coal. The aluminium producers feel this duty should be eliminated to support the power-intensive aluminium manufacturing industry. Power accounts for 40-45 per cent of the aluminium making cost.

In the Budget for 2016-17, the increase in duty for aluminium metal by 2.5 per cent (from 5