The government has waived customs duty on imports of certain raw materials, including coking coal and ferronicals, used by the steel industry, a move that will reduce costs and bring down prices for the domestic industry.
In addition, to increase domestic availability, duty on export of iron ore has been increased to 50%, and for certain steel intermediaries to 15%, according to a notification.
The change in duty will be effective from Sunday.
Import duty on ferronical, coking coal, PCI coal has been reduced from 2.5%, while duty on coke and semi-coke has been reduced from 5% to ‘nil’.
The tax on export of iron ore and concentrates has been increased from 30% to 50%, while for iron pellets, a duty of 45% has been levied.
“This will bring down the cost of final products,” tweeted Finance Minister Nirmala Sitharaman.
Rajat Mohan, Senior Partner, AMRG & Associates said that the drastic reduction in import duty on these products will help in curbing high inflation.
“Global economies are sickened by rising debt and high inflation. In light of the collapse of vulnerable developing economies due to high inflation, the Indian government has taken several measures to provide relief from the high prices of petrol, diesel, coal, iron, steel and Plastic,” said Mr. Mohan.