Indian steel makers call fir increasing export tax on iron ore - 27 Aug, 2008
It is reported that Indian steel majors 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. Steel makers said 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 help fight inflation.
Mr DS Rawat secretary general of the Associated Chambers of Commerce and Industry of India said "We have proposed an increase in the export duty on iron ore. 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%."
Mr Rawat said a higher iron ore export duty would help preserve the country’s natural resources for the benefit of India’s economy. He said that "If you conserve this, a lot of investors will be coming to states such as West Bengal, Karnataka, Orissa and Jharkhand.”
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.
