UAE likely to lift export tax on iron and steel scrap
As reported by SteelOrbis back in late August, United Arab Emirates (
UAE) imposed export tax of Dirham 250 ($68) per ton on iron and steel
scrap effective as of September 13, 2004. The decision was made to ensure availability of subject raw materials in domestic market and to prevent further price increases. However, the new regulation caused domestic
scrap dealers to lose business since their prices became less competitive in the export market due to the tax.
Upon this development together with the congestions at the ports, the
UAE authorities are planning to lift the taxes to help
scrap dealers and to prevent the congestion at the ports. Moreover, the shipped
scrap faces restriction when it moves to the destined country. As countries, such as
India,
Pakistan and
China imposed certain restrictions on imports of
scrap, the loss of
UAE scrap dealers doubles.
It is reported that
UAE federal government authorities, including Ministry of Economy and Commerce, the Federal Chamber of Commerce and Industries will handle the problem soon.