To compete internationally, domestic producers are seeking a level playing field and are expecting steps in that direction in the forthcoming budget. This can be achieved by lowering import duty on raw materials vis a vis higher import duty on the finished products. Owing to the government policy of having equal import duty rates for raw materials and finished (downstream) products, the non-ferrous metal producers are unable to compete with the international players. Industry sources say that several local duties have been imposed on indigenous producers as compared to producers in other countries. For instance, the domestic producers are required to pay sales tax/purchase tax whereas in most other countries this is not the case.

Metal scrap in Indonesia does not attract any duty, whereas the finished products attract a 10per cent import duty. Similarly, in Thailand while the finished products attract a 6 per cent import duty, concentrate and scrap do not attract any duty. Industry observers say that import duty on copper ore/concentrate should be reduced from 5 per cent to 2 per cent. While import duty on virgin metals like copper cathodes, wire bars, wire rods, cakes and billets can be retained at 30 per cent, import duty on copper scrap should be reduced from 30 per cent to 20 per cent.

Duty on downstream products like copper sheets, strips and plates should be increased from 30 per cent to 50 per cent.