Govt cuts export duty on steel, iron ore & hikes import duty on some raw materials

New Delhi: Six months after imposition of the levy, the government has cut the export duty on steel products and iron ore with effect from Saturday. As per a notification released by the finance ministry, exports of specified pig iron and steel products as well as iron ore pellets will attract 'nil' export duty. It also stated that export duty on outward shipment of iron ore lumps and fines with less than 58 percent iron content will be 'nil'. In the case of iron ore lumps and fines with more than 58 percent iron, the rate of duty will be 30 percent. "Import duty on anthracite/PCI, coking coal and ferronickel, used as raw materials in the steel industry, has been hiked to 2.5 percent, while for coke and semi-coke it has been raised to 5 percent, from 'nil' earlier," the notification said.

Scindia meets Sitharaman before the decision

The duty cut follows a meeting of Steel Minister Jyotiraditya Scindia with Finance Minister Nirmala Sitharaman earlier this week. The meeting was attended by Revenue Secretary Sanjay Malhotra and other officials.

Adoption of new technology necessary for transparent accounting system: Sitharaman

FM hiked export duty on iron & steel products to 15% in May to increase domestic availability

"The finance ministry had in May hiked the export duty on pig iron and steel products to 15 percent from 'nil'. The move was intended to discourage exports and increase domestic availability to help lower prices. The tax on export of iron ores and concentrates was hiked to 50 percent from 30 percent, while on iron pellets a 45 percent duty was imposed," said a press statement.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. You may follow us on Google News. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)