Cut in Import Duty for Copper Scrap to Boost Recycling

SEATTLE (Scrap Monster): The proposal to reduce import duty on copper scrap in the recently presented Union Budget 2021-’22 is likely to provide big boost to recycling of copper in the country. It must be noted that the copper scrap import duty has been halved from 5% to 2.5% in the budget. The reduction is expected to result in various benefits- social, environmental and economic. In addition, it may likely generate additional job opportunities in the country.

The increased utilization of copper scrap will help domestic companies to boost competitiveness and profitability. The innovations based on recycling could provide an edge for these companies in the export market as well. The use of scrap would reduce the dependence on imports for critical minerals, which in turn may help reduce trade deficit and promote economic stability.

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Recycling would lead to reduced need for extraction of minerals. This promises to deliver social benefits by ensuring less threat to local communities in mineral-rich areas. The reduced extraction activities will also lead to significant environmental benefits, mainly due to less pollution.

The innovation in recycling process and enhanced use of recycle materials may likely create highly skilled jobs, to the benefit of domestic industry.