The Indian domestic steel industry expressed satisfaction with the withdrawal of the steel export tax. The tax, introduced in May of this year, was withdrawn on Saturday, November 19th.
It is said that the abolition of the steel export tax was caused by the decrease in Indian steel exports by 66 percent to 360,000 tons in October.
According to the Ministry of Finance notification, iron ore containing less than 58 percent Fe' has withdrawn its export tax. The tax rate for iron ore containing 'more than 58 percent Fe' was announced as 30 percent.
In May, steel prices in the domestic markets had been falling since the government imposed an export duty on steel exports ranging from 15 percent to about 50 percent iron ore.
In addition, it was announced that the import duty on Anthracite/PCI, coking coal and ferronickel, which was announced to be free of tax in May, will be 2.5 percent.
Abhyuday Jindal, General Manager of Jindal Stainless, said that the withdrawal is necessary to enable domestic producers to compete with their global counterparts.
“Stimulating domestic steel demand will be a huge boost, especially as global steel demand has been falling sharply,” said Seshagiri Rao, CFO of JSW Steel & Group.
Saket Dalmia, President of the PhD Chamber of Commerce and Industry, emphasized that as iron ore is a key input for many industries across countries, it is a great opportunity to develop the export route. “We have a great opportunity to export iron ore and steel to various countries, at which point a calibrated approach becomes crucial to supporting domestic industry,” he said.
"The decision to immediately withdraw the export duty as soon as the inflation figures reach a reasonable level shows the concerns of the Government of India for the industry," said Alok Sahay, Secretary General of the Indian Steel Association.
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