UAE likely to lift export tax on iron and steel scrap

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.