In a bid to control galloping inflation that is now over six per cent and to cut the cost of manufacturing and infrastructure projects, the government has has slashed import duty on 11 items The Finance Ministry announced removal of customs duty on cement, specified capital goods, project imports and carbon black feedstock. It also cut customs duty on calcined alumina, ferro alloys stainless steel and other alloy steel. Customs duty on primary and semi-finished forms of copper, aluminium, zinc, tin and other base metals have also been reduced. In recent weeks, manufactured items as a group have shown price increases contributing to the overall inflation rate, which climbed to 6.12 per cent for the week ended January 6, the highest in two years. Economists have seen a cost-push factor for prices of manufactured items moving up. The government said the cut in customs duty, which comes into effect immediately, will bring down manufacturing costs and aid the development of infrastructure. The government was expected to cut customs duty in the budget, but the process has been hastened as an urgent measure to fight inflation.
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