Corporate | India raises exports tax on all grades of iron ore

Corporate | India raises exports tax on all grades of iron ore
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First Published: Tue, Dec 29 2009. 10 56 PM IST
Updated: Tue, Dec 29 2009. 10 56 PM IST
Mumbai: The government imposed a 5% duty on exports of iron ore fines and doubled the tax on overseas sales of lumps to 10%, to increase the supply of the material to domestic steel makers.
The new rates, applicable on all grades of iron ore with effect from 24 December, would adversely affect profit margins of large exporters such as Sesa Goa Ltd, said Sumeet Singhania, assistant vice-president at Antique Stock Broking Ltd.
Exports of the steel making material jumped 21% in the first seven months of the financial year started 1 April as steel makers in China, spurred by the government’s $586 billion (Rs27.4 trillion) stimulus package, increased purchases.
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First Published: Tue, Dec 29 2009. 10 56 PM IST
More Topics: Government | Exports | Iron ore | Tax | Corporate News |