India’s ministry of steel has communicated to its counterparts in the ministry of commerce and the Director General of Foreign Trade (DGFT) seeking exemptions from the new export tax on select finished steel products and iron ore for all contracts concluded with overseas buyers before May 22, senior government officials said on Thursday, June 9.
The Indian government has imposed a new export tax of 15 percent on select finished flat products, 45 percent on iron ore pellets and has increased the levy from 30 percent to 50 percent on iron ore lumps and fines.
However, there are differences within the government regarding the estimated volumes of finished steel exports contracted before the suggested exemption date of May 22, 2022.
According to the domestic steel industry, there is an estimated 2 million mt of finished steel for which contracts had already been concluded before May 22 and which are subject to the new tax, while the ministry of steel claims such contracts covered by letters of credit did not exceed 541,940 mt.