Indian miners seek higher import tax

India’s top mining industry federation is seeking higher import taxes on metals such as zinc, copper and aluminium to help halt a tide of cheaper imports, especially from China, according to a note it sent to the government and seen by Reuters.

The government should raise import taxes to 10per cent-15per cent on several aluminium products, including scrap to 10per cent from 2.5per cent, the Federation of Indian Mineral Industries (FIMI) said in the note addressed to the Ministry of Finance. The federation provided Reuters with summary of its points in the note reports Reuters.

India’s aluminium producers are expected to raise their combined production capacity to 4.6 million tonnes in the next two years, up from 4.1 million tonnes now.

India is the world’s third-biggest primary aluminium producer.

During the fiscal year to March 2023, India’s aluminium demand is expected to reach 4.2 million tonnes. It imported 2.3 million tonnes of aluminium in the previous fiscal year, much of that supply cheap imports.

“The major threat of imports is from China, which constitutes over 85per cent share of downstream aluminium imports,” the FIMI said in the note to the finance ministry as it prepares 2023/24 federal budget due to be announced in February.

The federation said most metal scrap imports were coming from Britain, Saudi Arabia, the United States, and the United Arab Emirates.

Separately, Satish Pai, managing director of major aluminium producer Hindalco Industries Ltd (HALC.NS), said it was also concerned about cheap Chinese imports.

“We should be careful not to allow the Chinese to dump into India just because their economy is in trouble,” Pai told reporters in a post-results media briefing.

The FIMI also urged government to raise import taxes on intermediate and finished goods of copper and zinc ingots to 7.5per cent from 5per cent.

“Low-quality copper scraps are being imported in large quantities by traders/importers into India these days, following the Chinese and Malaysian ban on scrap imports into their respective countries,” the FIMI said.