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Govt to inflict 15 % export duty on steel products
Within days of government charging the steel industry with cartel-like behavior, it is likely to impose up to 15 percent export duty on various steel products to contain rising prices.
According to an official at the steel ministry, the government is also planning to impose 10 per cent duty on export of flat steel products used by automobile sector and 15 per cent on long steel products such as TMT bars, rods, wires and galvanized plain and corrugated steel sheets.
The finance ministry is understood to have approved a slew of measures for containing the upward spiral in steel prices after harping on a 'revenue-neutral model' to offset the losses to the exchequer because of these measures.
A notification to this effect from the finance ministry is expected this week. Interestingly, the Government is planning to impose export duty on galvanised sheets, as the earlier suggestion from the steel ministry was to levy duty on flat and long prod ucts.
Steel prices have risen by up to 49 per cent during the past one year and recently most companies, barring state-run steel giant SAIL and world's cheapest steel maker Tata, have started levying raw material surcharge of Rs 5,000 to somewhat offset their input costs
With inflation hovering around over 7 per cent, government has expressed concerned over metal prices, especially that of steel, contributing to inflationary pressures.
Within days of government charging the steel industry with cartel-like behavior, it is likely to impose up to 15 percent export duty on various steel products to contain rising prices.
According to an official at the steel ministry, the government is also planning to impose 10 per cent duty on export of flat steel products used by automobile sector and 15 per cent on long steel products such as TMT bars, rods, wires and galvanized plain and corrugated steel sheets.
The finance ministry is understood to have approved a slew of measures for containing the upward spiral in steel prices after harping on a 'revenue-neutral model' to offset the losses to the exchequer because of these measures.
A notification to this effect from the finance ministry is expected this week. Interestingly, the Government is planning to impose export duty on galvanised sheets, as the earlier suggestion from the steel ministry was to levy duty on flat and long prod ucts.
Steel prices have risen by up to 49 per cent during the past one year and recently most companies, barring state-run steel giant SAIL and world's cheapest steel maker Tata, have started levying raw material surcharge of Rs 5,000 to somewhat offset their input costs
With inflation hovering around over 7 per cent, government has expressed concerned over metal prices, especially that of steel, contributing to inflationary pressures.
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