NSIRMA decries customs duty increase in iron sponge

KATHMANDU, MAY 29: The Nepal Steel and Iron Rolling Mills Association (NSIRMA) has opposed the government’s announcement to increase customs duty on sponge iron.  Organising a press meet in the capital today, the association did so.

While presenting the budget for the next fiscal year yesterday, the Finance Minister announced an increase in the customs duty on sponge iron- the major raw material for steel industries based on melting- from 1 to 2.5 per cent.

According to the NSIRMA, the very increment can jeopardise the huge investment of Rs 36 billion in such industries that number 18.

“The government has a policy to maintain a 5 per cent difference in the customs duty between the raw materials and finished products. The same policy should be implemented in the case of sponge iron imported by the industries,” the association demanded.