Union Budget 2023, announced the Government of India vision and support towards a carbon neutral economy has been appreciated by the recycling industry.
In a big boost for taxpayers and the economy, Sitharaman announced major changes in tax slabs under the new tax regime and a big hike in allocation for railways and capital expenditure will certainly enhance the demand for the recycling industry as a whole. It also reflects the strong commitment of the Union government to boost economic growth by investing in infrastructure development leading to an increase in capital expenditure by 37.4 per cent over the revised estimate (RE) 2022-23.
Material Recycling Association of India (MRAI) greatly appreciate the announcement to encourage the availability of raw materials for the steel sector by continuing the zero per cent Basic Customs Duty (BCD) on secondary steel raw material of ferrous scrap, for the manufacture of CRGO Steel, and nickel cathode to achieve our green steel goal has been greatly appreciated.
In order to ensure the raw material security of scrap for secondary steel, the FM announcement in the 2023 budget to replace the old polluting vehicles is an important part of greening our economy. In persistence of the vehicle scrapping policy mentioned in Budget 2021-22, FM allocated adequate funds to scrap old vehicles of the Central Government. The State Government will also be supported in replacing old vehicles and ambulances.
In addition to ferrous metals announcement, “we also appreciate FM announcement for the concessional BCD of 2.5 per cent on copper scrap has been continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector”
“We also appreciate government support to promote sustainability agenda to enhance EVs mobility, customs duty exemption has been extended to the import of capital goods and machinery required for manufacturing of lithium-ion cells batteries to boost domestic manufacturing, domestic value addition and green energy”
– Sanjay Mehta, President, MRAI.