The central government has cut export duty on steel products and iron ore. This deduction will come into effect from Saturday. This fee was imposed six months ago. The Finance Ministry issued a notification in this regard on Friday late night. It was informed that export of specified pig iron and steel products, iron ore pellets will no longer attract duty.
What other changes
Export duty on low iron iron ore lumps and fines (containing less than 58 per cent iron) has also been reduced to zero. At the same time, the export duty on iron ore lumps and fines containing more than 58 percent iron has now been reduced to 30 percent.
According to a government notification, the import duty on anthracite/PCI, coking coal and ferronickel, used as raw materials in the steel industry, has been increased to 2.5 per cent, while coke and semi-coke which were earlier nil. Now it has been increased to five percent on these.
Government in action after seeing decreasing exports
Steel exports in the country are continuously decreasing. At the same time, the price of domestic steel is also increasing. On the other hand, steel prices are much lower in overseas markets. Its direct loss was being caused to Indian companies, customers and steel exporters.
Steel Minister Jyotiraditya Scindia had a meeting with Finance Minister Nirmala Sitharaman earlier this week which was attended by senior officials including Revenue Secretary-elect Sanjay Malhotra. After this meeting, it has been decided to cut the fee.
Why was the export duty increased
Earlier in May, the Finance Ministry had raised the export duty on pig iron and steel products from ‘nil’ to 15 per cent. The move was aimed at discouraging exports and increasing domestic availability to bring down prices.