India removes export tax on iron ore fines - 08 Dec, 2008 . Indian government, which has been concerned about the impact of the global financial crisis on the Indian economy, has announced a number of steps to deal with this problem.
Among them, vital one for iron and steel industry in India and China is removal of 8% export tax on iron ore fines.
The government announcement said that “Export duty on iron ore fines will be eliminated and on lumps will be reduced to 5%.”
At present, 8% advalorem export duty exists on iron ore fines, while that on lumps stands at 15%.
The move comes after the iron ore exporters led by their apex body Federation of Indian Mineral Industries petitioned the PMO and Commerce Ministry recently highlighting their plight, pointing out that following the global meltdown and financial crunch, there has been a scaling down of economic activity globally.
FIMI had earlier said that “Since 88% of total Indian iron ore exports make their way to China a slump in the Chinese steel industry will adversely affect exports. Ore exports in September 2008 were down by 44% over September 2007 and in October 2008 by more than 54% over the corresponding month last year.”
Mr Rahul Baldota president of Federation of Indian Minerals Industries said that “We are happy that the government has listened to the federation. This move is going to help the industry. However, we will be happier if the duty on lumps is also removed.”
Source : Steelguru