Indian budget expected to alter import duty structure for steel inputs

Thursday, 28 January 2021 11:03:07 (GMT+3)   |   Kolkata

The Indian government is likely to alter the inverted duty structure in the forthcoming national budget whereby inputs for steel production currently attract higher customs duty than finished products, government sources said on Thursday, January 28.

Citing examples, the sources said that, in the current customs duty structure, ferronickel and stainless steel scrap attract a higher rate of customs duty than imported stainless steel, particularly in the case of inward shipments from Free Trade Agreement (FTA) countries, thereby acting as a fiscal disincentive for domestic production.

The government is also considering reducing or even scrapping the 15 percent customs duty currently imposed on ferronickel and stainless steel scrap to promote domestic production.

The budget is also expected to either lower or scrap the current 2.5 percent customs duty on coking coal, as sought by domestic steel producers, government sources said.

Most Recent Related Articles

Ind-Ra: Indian steel exports to remain low in Q4 FY 2020-21

Indian stainless pipe producers: Duty revocation for raw materials will break domestic monopolies

Tata Steel to seek shareholders’ approval for amalgamation of Bamnipal Steel, Tata Steel BSL with itself

India and EU recommence talks on bilateral trade

POSCO shows interest in JV steel mill with India’s RINL