New Delhi: It would be premature to raise tax on iron ore exports, in what could provide at least a temporary relief to exporters and miners of the commodity, minister of state for finance SS Palanimanickam said in a written reply in Parliament on Friday.
“The union steel ministry has recommended a regime of export duty on iron ore as one of the measures to check the price rise and increase domestic availability of iron ore,” Palanimanickam said in his written reply to a question.
“However, since export duty had been increased on iron ore lumps from 10 (%) to 15% on 29th April, it was felt that any further change so soon, would be premature.”
India’s steel industry has frequently lobbied for a ban on iron ore export or at least for further raising the export duty on it so that more of the commodity is available for local use at low prices.
India last raised the export duty on iron ore lumps in April to 15% from 10%. Last December, it slapped a 5% export duty on iron ore fines.