Giving a huge relief to the steel makers, iron and steel product manufacturers, Government of India on Friday has announced to remove the export duty on certain iron and steel products like pig iron, iron and steel ingots, bars and rods, angles, shapes, sections.
This decision came in the wake of sharp sliding prices of iron in the international market, as Union Finance Minister P Chidambaram told yesterday. The new revised rate will come into effective from tonight (Nov 01, 2008).
The Government has also ease a five percent basic custom duty from Aviation Turbine Fuel (ATF) to protect domestic aviation industry that is facing recession due to rising prices of ATF.
The Centre and State governments impose independent custom duty, Value Added Tax (VAT) and other taxes which cumulatively raise the cost of ATF for domestic airlines, while for the international airlines- it is determined on the line of global prices.
Thus, this step of Central Government would motivate the state governments to reduce various taxes on ATF and help the domestic airlines to reduce the hefty losses and enhance their business.
In terms of iron and steel product, government for making parity with international market has eliminated the export duties on some specific iron products including pig irons, irons and steel ingots, which it had imposed on specified iron and steel products in May, 2008 and were later modified in June, 2008.
However, the government has also directed that scrap would continue to attract the existing rate of export duty.
Besides, the government has replaced a specific duty of Rs.200 per metric tonnes (PMT) to a 15 percent ad valorem on iron ore. Now, a specific duty of Rs.200 PMT would be levied on fines only on iron ore while the rate of export duty of iron ore lumps would remain unchanged.
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