The India Govt reversed its prior ruling from May. When it had raised the tax to a harsh 50% in order to control inflation, and abolishes an export tax charged on low grade iron ore lumps & fines for less than 58 percent iron content on November 18.
The government also eliminated the 15% export tax that was impose in May on several steel intermediates in the announcement. Which comes into effect on Nov 19.
In addition, the government reduced the 50 percent export tax for iron ore & concentrates else than roast iron pyrites to 30 percent.
“The Central Government hereby makes the following further adjustments,” the announcement stated. “The Central Government is satisfied that it is require in the public interest to do so.”
Alok Sahay, secretary-general of the Indian Steel Association, “Decision to Withdraw the Export Duty Implied on Iron & Steel Items, Immediately Once Inflation Numbers Came to Respectable Level Shows the Concern of the India’s Government toward the General Public and the Industry.”
Having a high export tax over intermediates steel products has a negative impact on exports as well.
For the quarter that concluded on September 30, 2022, the majority of steel businesses reported reduced volumes. Seshagiri Rao, the managing director of JSW Steel, told in an interview on October 25, 2022.
That he expects a reversal of export duties at any time because inflation has already declined significantly from its high.