The government may consider reducing import duties on products such as steel, aluminium, copper and polymers in the budget to provide relief to small and medium businesses, which have been hit hard by surging input costs, two people aware of the development said.
A broad understanding between the steel and finance ministries has been reached to review import duties on major metals and bring them down and, in some cases, withdraw them completely to help user industries, the people said, requesting anonymity.
An announcement on this is expected in the upcoming budget, they said.
The steel ministry did not respond to a query seeking comment, while a mail to the finance ministry didn’t elicit a reply.
The import duty on steel is 7.5%, while aluminium attracts 10% basic customs duty, copper 5% and polymers 10%. In addition, all the products also attract 18% integrated goods and services tax to offset local levies on the products.