The
steel ministry on Wednesday held a meeting with the industry players over the
European Union's move to impose carbon tax, sources said
The
steel ministry on Wednesday held a meeting with the industry players over the
European Union's move to impose carbon tax, sources said.
The meeting comes amid the carbon border adjustment mechanism
(CBAM) being implemented by the European Union, which would have an adverse
impact on India's exports of metals such as iron, steel and aluminium products
to the EU, they said.
The EU is introducing CBAM from October 1 this year. The new
mechanism will translate into a 20-35 per cent tax on select imports into the
EU starting January 1, 2026.
On the request of the representatives of various steel companies
and industry bodies the steel ministry held a meeting on Wednesday evening.
"In the hybrid meeting chaired by steel secretary Nagendra
Nath Sinha, the industry raised the issue of CBAM, saying it violates several
articles of the WTO," sources said.
They also noted that post imposition of the tax regime, India
will become vulnerable to dumping of steel items by various countries, which
may include those part of the EU itself.