Budget Revises Basic Customs Duty on Some Steel Products

Steel Insights Bureau

Finance Minister Arun Jaitley tinkered with the basic customs duty on some steel products in his annual Budget for 2017-18.

The Budget cut the basic customs duty of MgO coated cold rolled coils (7225 1990) for use in the manufacturing of CRGO steel, subject to actual user condition from 10 percent to 5 percent.

The Budget cut the basic customs duty of hot rolled coils (7208) for use in the manufacturing of welded tubes and pipes falling under heading 7305 and 7306, subject to actual user condition from 12.5 percent to 10 percent.

However, the government increased the basic customs duty on co-polymer coated MS tapes/stainless steel tapes used for manufacturing specified telecommunication grade optical fibres or optical fibre cables, subject to actual user condition from nil to 10 percent, the Budget document showed.

Infra allocation at record ₹3.96 lakh crore

The Budget for 2017-18 has clearly focused on three major sectors: rural areas, infrastructure development and poverty alleviation, which include a record ₹3.96 lakh crore allocation in infrastructure.

It is expected that infra spending in going to create demands for sectors like steel, coal and cement which are the key raw materials of construction.

The real estate sector, especially the low-budget housing space, and Railways benefited from the latest Budget, which is expected to boost economic development of the country.

Affordable housing has finally been given infrastructure status. This indicates that cheaper loans will be available for developers of budget housing and significantly support the government’s target of Housing for All by 2022. Affordable Housing has seen a significant change in the government’s existing scheme, with the qualifying size requirements now changed from built-up area to carpet area of 30 sqm and 60 sqm for projects within the municipal limits of the large 4 cities.