India to reduce excise duty on steel and monitor prices

India to reduce excise duty on steel and monitor prices

Indian government is reportedly planning to take steel prices under control following the call made by Union Chemicals, Fertilizers and Steel Minister Ram Vilas Paswan. At the meeting held recently, it was stated that a regulatory authority suggested by National Steel Council (NSCC) will be responsible for monitoring steel prices to protect interests of steel producers and consumers. The authorities stated that the government has two ways of controlling steel prices. The one is reducing excise duty on steel and the second solution is setting up a regulatory authority that will monitor steel prices. Following the request of certain steel authorities, Finance Ministry is reportedly planning to reduce excise duty on steel from 12% to 8%. As previously reported by SteelOrbis, the Indian government on July 8, 2004 reduced import duty on steel from 15% to 10% and hiked excise duty on steel from 8% to 12%. It is stated that rollback in the excise duty will lead to reduction in steel prices for steel consumers without injuring the producers. Meanwhile as reported by SteelOrbis back on Friday, the Indian government is planning to reduce import duty on steel from 10% to 5% to provide steel availability in domestic market so that the producers will not have to hike their prices.