Mumbai, Feb. 28
The landed cost of major non-ferrous metals including copper, nickel, zinc and lead metal is likely to increase by about 5 per cent, despite the 2.5 per cent basic customs duty cut proposed in the Union Budget 2006-07.
The Finance Minister, Mr P. Chidambaram, has proposed a 2.5 per cent reduction in the basic customs duty to 7.5 per cent from 10 per cent while he also proposed additional 4 per cent countervailing duty on all imports, apart from the normal rate of 16.32 per cent.
"The net effect of 4 per cent in the cost of raw materials will now be 6 per cent and the cost is bound to go up,"
Mr Rohit Shah, President, Bombay Metal Exchange,told
"The Budget is not so exciting for the trade," Mr Shah said.
Service tax to hit trade
There has also been increase in the service tax from 10 per cent to 12 per cent, which will definitely hamper the non-ferrous metals trade.