Talks on reviewing the export duties on
steel and iron ore are on. But a final decision is yet to be taken by the
government,” said an official source.
The government is likely to cut or abolish the
recently-imposed export taxes on key steel products soon, while also raising
the impost on iron ore dispatches, sources told FE. The move comes amid
concerns expressed by steelmakers that while domestic demand has remained muted
in recent months, companies are losing out overseas customers due to the export
taxes.
Top executives of major steel firms, under the aegis of the
Indian Steel Association, met finance minister Nirmala Sitharaman on June 16.
They are learnt to have not just briefed the minister about the state of demand
and supply but also sought a reduction of the export duty, if not an outright
abolition of the impost.
“Talks on reviewing the export duties on steel and iron ore are on. But a final
decision is yet to be taken by the government,” said an official source.
Moving in to rein in input prices and control runaway
inflation, the government on May 22 imposed an export duty of 15% on select pig
iron, flat-rolled products of iron or non-alloyed steel, bars and rods and
various flat-rolled products of stainless steel and another 45% on iron ore
pellet. Similarly, the export duty on iron ores and concentrates was raised to
50% from 30%.