<p>The government is likely to address the issue of inverted duty structure for certain steel products in the Budget next week to boost domestic manufacturing, sources said.</p>.<p>Inverted duty structure refers to taxation of inputs at higher rates than finished products that results in build-up of credits and cascading costs.</p>.<p>Sources said that the government may consider removing customs duties on raw materials used for manufacturing of certain flat-rolled products of stainless steel.</p>.<p>Presently the import duty on key inputs for stainless steel flat products -- Ferro Nickel and SS scrap -- is higher than the import duty on final goods coming in from free trade agreement (FTA) partners.</p>.<p>This is adversely affecting the interests of the domestic stainless steel industry, they added.</p>.<p>Raw materials such as Ferro Nickel and SS scrap are also not available in India in adequate quantities and quality. There is about 15 per cent duty on these inputs.</p>.<p>Inverted duty structure impacts the domestic industry as manufacturers have to pay a higher price for raw material in terms of duty, while the finished product lands at lower duty and cost.</p>.<p>India has implemented FTAs with many countries including Japan, South Korea and Singapore, and is in discussion with several other nations. </p>
<p>The government is likely to address the issue of inverted duty structure for certain steel products in the Budget next week to boost domestic manufacturing, sources said.</p>.<p>Inverted duty structure refers to taxation of inputs at higher rates than finished products that results in build-up of credits and cascading costs.</p>.<p>Sources said that the government may consider removing customs duties on raw materials used for manufacturing of certain flat-rolled products of stainless steel.</p>.<p>Presently the import duty on key inputs for stainless steel flat products -- Ferro Nickel and SS scrap -- is higher than the import duty on final goods coming in from free trade agreement (FTA) partners.</p>.<p>This is adversely affecting the interests of the domestic stainless steel industry, they added.</p>.<p>Raw materials such as Ferro Nickel and SS scrap are also not available in India in adequate quantities and quality. There is about 15 per cent duty on these inputs.</p>.<p>Inverted duty structure impacts the domestic industry as manufacturers have to pay a higher price for raw material in terms of duty, while the finished product lands at lower duty and cost.</p>.<p>India has implemented FTAs with many countries including Japan, South Korea and Singapore, and is in discussion with several other nations. </p>