India's steel industry urged the Indian Government to impose an additional 10 percent import duty on steel apart from 10 percent countervailing duty on TMT bars and a special additional duty of 4 percent in order to save domestic industry to control cheap overseas arrivals of the commodity, and to protect domestic steel industry against cheap imports amid global slump in demand and prices, as the government gears up to formalize another dose of stimulus package to boost demand.
On account of global economic downturn, steel companies from countries such as China and Ukraine started dumping their piled up stocks in India in bulk quantities, which prompted domestic manufacturers to call for imposition of import duty.
Accordingly, Minister of State for Steel Jitin Prasada said to press, "Advocating more protection for the industry by way of higher taxes, the government move to levy a five percent customs duty on steel items, besides restricting their imports, would provide a cushion to the sector. In addition to pushing for higher import tax, the ministry would also demand 14 percent countervailing duty on TMT bars and structurals to make imports competitive."
Countervailing duty is equivalent to the excise paid by domestic manufacturers. This imposition is expected to benefit leading Indian steel producers like SAIL, RINL, Tata Steel, JSW and Ispat.
Earlier this month, the government had imposed a five per cent customs duty on steel imports besides restricting arrivals of various steel items to protect India's industry against cheaper arrivals in the country.
India's steel companies had recently slashed output and prices of the metal by up to 20-30 percent, in order to stay unaffected against the global economic meltdown.