Budget 2023 expectations of MRAI

Today, let’s find what are the Budget 2023 expectations of MRAI. Material Recycling Association Of India (MRAI), expects the exemption of the basic customs duty on metal scrap, from the Government of India, in this year’s national budget. Read on to know more.

Budget 2023 expectations of MRAI

In the forthcoming Union Budget 2023-24, the Material Recycling Association of India (MRAI)- the apex body of the recycling Industry of the country, highlighted their wish list to the government – Removal of basic custom import duties and taxes along with the policy measures to boost the growth of the industry. As the recycling industry plays an important role in building a more sustainable economy and will help to reduce the greenhouse gas emissions that cause climate change.

Sanjay Mehta, President of MRAI, expressed his expectation saying, “Material Recycling Association of India (MRAI) hopes that the government will continue with the existing zero percent duty on ferrous scrap import till we generate a sufficient quantity and quality of scrap from the domestic market. This will help to create a level-playing field for Indian recycling industry in the global arena.”

Metal scrap is the key raw material of the secondary metal manufacturing industry and accounts for almost 40 to 45 percent of total India’s production.

Sanjay Mehta added, “Removal of basic customs duty on metal scrap will provide a big boost to the MSME units of recycling industry largely dependent on imported scrap as a key raw material.”

Urging the government to review the inverted duty structures to offset import duty on the metal scrap, Sanjay Mehta further said, “If it is not possible to amend the FTA, kindly provide us the duty-free imports to Indian manufacturers so that there is a level playing field for both. The move will also benefit other industries in the micro, small and medium enterprise (MSME) sector that uses metal for finished products in various downstream applications such as infrastructure and auto components”.

He further emphasized that the removal of basic customs duty will offer a unique window of opportunity to decouple growth from resource requirements.

The force multiplier of the sunrise industry, MRAI has over 1200 members spanning over recycling and recyclable commodities including metals (both ferrous and non-Ferrous), plastic, paper, waste and e-waste, tyre and rubber, glass, automobile, building and construction and water.

Sanjay Mehta was also thankful to the government for the previous budget announcement for the recycling industry by minimizing the basic customs duty. He said, “Such basic custom duty on metal is really hurting our recycling industry, which is employing, directly and indirectly, more than 25 lakhs manpower and the majority of them are women from the weaker section of the society.”