Indian steel companies push for iron ore export tax hike - 28 Aug, 2008
Reuter reported that Indian steel firms have asked the government to increase an export duty on iron ore to 35% from 15% to slow exports and ensure supplies in the domestic market.
An industry official said that their profit margins have been squeezed by rising prices of raw materials such as iron ore and coke, as well as government pressure to hold prices to fight inflation. But local miners argue demand for Indian iron ore from the main buyer China has dropped sharply in the past six weeks as even the existing the duty, introduced in June, had made rival suppliers more attractive.
Mr DS Rawat secretary general of the Associated Chambers of Commerce and Industry of India, an industry body which has been lobbying for the steel sector said that “We have proposed an increase in the export duty on iron ore.”
Mr Rawat said that “We have given a written communication to the finance minister and commerce minister for urgently increasing the duty rate on iron ore exports from 15% to 35%.” He added that the proposal to hike the tax was handed over to government officials last week.
