In its pre-budget memorandum, presented to the Finance Minister Yashwant Sinha, the Bombay Metal Exchange (BME), which has membership of 458 industrial units, importers, dealers and others related to the metal industry, has urged the government to initiate a number of proposals to alleviate the burden of the local industry.

The paper noted that the government had kept the difference in import duty rate between raw materials and finished products at five per cent in the last budget.

The BME has recommended a four slab duty structure in which concentrate will bear a duty of two per cent, scrap 20 per cent, virgin metals 25 per cent and finished products a duty of 40 per cent.

The association in its memorandum said that the new duty structure is important since the local industrial units are burdened with levies such as octroi, sales taxes, purchasetax, higher interest rates, energy costs and difficult transportation and infrastructure.

However, the international markets and traders face no such burden and hence tough competition. The local industry and metal prices are mainly based on the international market prices; namely the London Metal Exchange (LME). The recent turbulence in the global metal markets has trimmed the margins of traders with many of them leaving the pit for greener pastures.

Another major issue, according to the organisation, is the complicated procedures adopted by the central excise authorities. Authentification of invoices issued by importers and also the second stage dealers have been highly complicated and has led to substantial increase in paperwork consuming a number of manhours causing delays in despatch and delivery.

The body has suggested that the registered traders and dealers must be asked to submit trade details in a prescribed form containing specific information by the excise departments. On the visits byofficers to traders and industries' premises without proper warrants must be discouraged at any cost, the association demanded. Citing instances of harassment by officers, the association said that unhealthy practices by officers have led to an insecurity among the trading community."Care should be taken by the excise staff to differentiate between evasion and genuine technical error," the note said. The exchange has also sought an increase in the exemption limit in the income tax to be hiked to Rs 75,000 in view of the inflation. It has also demanded a cut in income tax on partnership firm to be brought down by 35 per cent at par with individuals.