India scraps export tax on iron ore and steel
- India's iron ore exports had dropped to 'nearly zero'in October due to higher export taxes and was further expected to languish due to lower demand from China
The Centre has reversed its previous order by deciding to scrap the export duty on iron ore and several steel products. Earlier the government had imposed export taxes on these metals due to soaring prices.
Iron ore and steel saw a big drop in export last month--bringing down overall exports by over 16%--the first fall in nearly 20 months.
However, on Friday, the Centre decided to abolish the export tax on iron ore lumps and fine and pellets. India scrapped an export tax levied on low-grade iron ore lumps and fines with below 58% iron content, reversing an earlier order from May when it had raised the tax to a steep 50% to rein-in inflation.
In the notification, which takes effect on Saturday, the government also removed the export tax on some steel intermediates from 15%, also imposed in May.
India has also lowered the export tax on iron ore and concentrates other than roasted iron pyrites to 30% from 50%.
"The Central Government, on being satisfied that it is necessary for the public interest so to do, hereby makes the following further amendments," the notification said.
India's iron ore exports had dropped to "nearly zero" in October due to higher export taxes and were further expected to languish due to lower demand from China, Reuters news agency said citing a senior officer.
Producers of low-grade ore depend largely on overseas markets, as most major domestic steel producers consume high-grade iron ore, the Federation of Indian Mineral Industries (FIMI) said earlier this year.
The high export tax on intermediate steel products also significantly hurt shipments.
India's finished steel exports more than halved during the first seven months of the fiscal year that began in April 2022, the agency claimed, citing government data.
Last week, India's JSW Steel Ltd, the country's largest steelmaker by capacity, told Reuters it expects its exports to fall to an over five-year low in 2022/23 because of reduced global demand and the high export tax.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:19 Nov 2022, 08:00 AM IST
- Top Gainers
- Top Losers
- 52 Week High