Scrap dealers in UAE worried about scrap taxes

Scrap dealers in UAE worried about scrap taxes

According to recent news in the market, a number of scrap dealers in United Arab Emirates (UAE) are on the verge of bankruptcy due to the export tax imposed on iron and steel scrap. As reported by SteelOrbis in August, Ministry of Finance and Industry of UAE announced that it will impose export tax of Dirham 250 ($68) per metric ton on iron and steel scrap. The notice regarding the subject came in to effect on September 13, 2004. The decision was made to ensure availability of subject raw materials in domestic market and to prevent further price increases. In UAE, domestic demand for the subject products has increased due to rising construction projects. However, the tax of Dirham 250 caused domestic scrap dealers to lose business since their prices have become less competitive in export market due to the tax. Scrap dealers want an emergent solution to the problem.