The government of Federation entity said it will take action to abolish import tax on unalloyed aluminum at the request of a local aluminum smelter. The decision will be forwarded to state-level government, the entity government said in a statement.
In February, Mostar-based Aluminij smelter said it has proposed to the government to abolish import tax on unalloyed aluminum to cut production costs and boost output. Aluminij could melt 25,000 tons of unalloyed aluminum annually by using natural gas instead of electricity, which will boost its output by 30%, the company said.
According to the government, if import tax on unalloyed aluminum is abolished, Aluminij will produce 180,000 tons of aluminum in 2017, above its plan of 111,000 tons. Annual exports will grow by some 43 million euro.
The government of Federation owns 44% of Aluminij, as much as workers and minority shareholders, while the Croatian government holds a stake of 12%.