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A reduction in customs duty on import of critical raw materials while a hike on the import of primary aluminium, aluminium scrap and other items and elimination of cess on coal are the budget wishlist of the Aluminium Association of India (AAI).

In a letter to the Union Ministry of Finance, the AAI has requested the Indian government to reduce the basic custom duty and correction of inverted duty structure on critical raw materials like the calcined and raw petroleum coke, caustic soda lye, aluminium fluoride, green anode/ pre-baked carbon anode and calcined alumina.

The customs duty reduced requested ranges between 7.5 per cent and five per cent based on the product.

The AAI has also requested the government to increase the basic customs duty ranging between 2.5 per cent to 7.5 per cent on products like primary aluminium, aluminium scrap and different downstream aluminium products.

According to AAI, the increase in basic custom duty on aluminium scrap at par with primary metal to proposed 10 per cent, as in line with other non-ferrous metals like zinc, lead, nickel, tin, etc., have same custom duty for scrap and primary metal.

The industry lobby body has also requested the government to eliminate the cess on coal (GST compensation cess of Rs.400/MT) to support highly power intensive industries like aluminium.

The AAI has also requested the Indian Railways to reclassify bauxite and alumina and charge concessional freight rate for carriage of coal, coke, aluminium and raw materials.