Home / Metal News / Commerce Ministry of India recommends roll back of 5% duty on iron ore pellet export

Commerce Ministry of India recommends roll back of 5% duty on iron ore pellet export

iconFeb 12, 2014 14:28
Source:SMM
In a letter addressed to the Revenue Department under Finance Ministry, the Indian Commerce Ministry has recommended withdrawal of 5% duty imposed on iron ore pellet exports from the country.

12 Feb 2014 Last updated at 01:45:32 GMT 

NEW DELHI (Scrap Monster): In a letter addressed to the Revenue Department under Finance Ministry, the Indian Commerce Ministry has recommended withdrawal of 5% duty imposed on iron ore pellet exports from the country. The Ministry noted that value-added products like iron ore pellets are key to India’s export basket.

According to Commerce Ministry, the government during the past several years had incentivized the iron-ore pellet producers to expand capacities and increase productions. The manufacturers have struggled hard to meet the export quality parameters by spending huge sums of money. The imposition of duty will badly affect the industry, the Ministry noted.

Meanwhile, the government’s decision came under severe criticism from the Pellet Manufacturers Association of India (PMAI). PMAI pointed out that the duty has been levied without taking into consideration the views of the pellet manufacturers in the country. According to PMAI, the lack of domestic demand has forced many pellet manufacturers to operate at less than 50% of the installed capacity.

The government had imposed the levy on a proposal from the Steel Ministry. Earlier, steel producers in the country had sought imposition of tax on pellet exports. Industry body ASSOCHAM also had requested the government to impose 30% export duty on pellet exports.

ALSO READ India government to levy 5% duty on exports of iron ore pellets

Author: Paul Ploumis

iron ore pellet export
export duty
iron ore fines
lumps
india
steel industry
PMAI
ASSOCHAM
commerce

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All