Government is believed to have decided to impose 15% export duty on iron ore, used for making steel, which has seen a 50% increase in prices since January, thereby fuelling inflation.
The decision was taken at the meeting of the Committee of Secretaries (CoS) on May 30. The CoS has also decided to roll back export duty on steel, barring primary and semi-finished products, in return for the Rs 4,000 per ton reduction in prices announced by them early last month.
At present, an export duty at a specific rate of Rs 300 per ton is imposed on iron ore with 62% of higher iron content and Rs 50 per ton on lower grade ore. Under the new dispensation, the export duty would be based on the value of the product shipped abroad.
Decisions on both roll back of export duty on steel and imposition of the same on its raw material are expected to be announced in the next few days. The Department of Revenue will notify the decision once the CoS minutes are issued.
Rise in raw material prices, strong demand in international and domestic market and increase in global steel prices are some of the reasons cited by the industry for increase in the domestic prices, which have been further impacted by the demand-supply mismatch. – MyIris
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