India tries to lift import tax on coal

The Indian Ministry of Steel has requested the Ministry of Finance to abolish the tax on imports of coking coal.

The ministry's plan to remove the tax on limestone, manganese ore, scrap steel, graphite electrodes, chrome ore and ferronickel, in addition to coking coal, has been sent to the finance ministry, the sources said, on condition of anonymity.

Sources said that adopting tax exemptions on raw materials would cost $449 million.

Coking coal imports meet about 85% of India's annual needs, ranging from 50 to 55 million tons.

The government's introduction of steel export duty in May of this year had reduced the profits of Indian steel mills. He says it will take time to recover some of the jobs lost in traditional export markets like Europe, with India lifting export duties on some steel products in November.