India Sets Steel Export Taxes
05/23/2022 - Hoping curb inflation and keep domestic steel prices in check, the Indian government over the weekend raised an export tax on iron ore, imposed a new export tax on a number of steel products and reduced an import tax on certain raw material imports to zero, according to reports.
According to The (India) Economic Times, the revisions include a 45% tax on iron ore pellets and a 15% tax and hot-rolled and cold rolled products. Meanwhile, a tax on coking coal imports was reduced to zero.
The Indian Steel Association, however, said the move would backfire.
"India may lose export opportunities now,” the Indian Steel Association said in a statement.
“The imposition of an export duty will help other countries take market share, which India will vacate. Rebuilding the lost ground may take a very long time, as the supply chain will be disrupted, while India's credibility as a reliable exporter will take a hit," the association said.
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