Indian engineering products exporters have proposed to the Indian government the immediate scrapping of the 15 percent export tax on certain stainless steel products, claiming it to be the cause of the plunge in exports during September this year, a statement of India’s Engineering Export Promotion Council (EEPC) said on Tuesday, October 18.
The EEPC said that stainless steel bars have very low domestic consumption and have not contributed to the inflation situation that prompted the government to impose the export tax.
It said that withdrawal of the export tax will help small and medium-scale enterprises which contribute significantly towards engineering exports.
The EEPC also said that the export tax is the primary reason for engineering exports recording a fall of 17 percent year on year in September this year.