India has removed the import tax on ferrous scrap until 31 March 2022 to counter the impact of Covid-19 on the economy.
The Bureau of International Recycling has published a document on its website from India’s Ministry of Finance which confirms that the 7204 harmonized system code associated with ferrous scrap had fallen from 2.5% to zero on 1 February.
The tax on copper scrap drops from 5% to 2.5% although aluminium scrap remains unchanged ‘which is not surprising given the influence of domestic producers within India,’ a scrap trader has commented on social media.
This is the ‘first in a very long time’ that the Indian government has lowered tariffs on scrap and is part of an effort by India’s government to boost the economy to the economic impact of Covid-19.
Additionally, the customs duty on primary or semi-finished products, flat- and long-products of steel and stainless steel will now be taxed at a flat rate of 7.5%, down from around 12% previously, as the government looks to boost infrastructure.
Would you like to share any interesting developments or article ideas with us? Don't hesitate to contact us.