The government has waived customs duty on the import of some raw materials, such as coking coal and ferronickel, used by the steel industry, a move that will lower the cost for the domestic industry and reduce the prices.
The duty on the export of iron ore has been hiked up to 50 per cent, and a few steel intermediaries have increased to 15 per cent, according to a notification.
The duty changes will be effective from Sunday.
The duty on ferronickel, coking coal, PCI coal has been cut from 2.5 per cent to 2.5 per cent, while the duty on coke and semi-coke has been slashed from 5 per cent to 'nil'.
The tax on the export of iron ores and concentrates has been hiked to 50 per cent, from 30 per cent, while a 45 per cent duty has been imposed on iron pellets.
Duty on pig iron and spiegeleisen in pigs, blocks or other primary formats, flat-rolled products of iron or non-alloy steel of a width of 600 mm or more, cold-rolled or coated products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated, flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, have been hiked to 15 per
15 per cent duty has been imposed on flat-rolled products of stainless steel of width 600 mm, other bars and rods of stainless steel, angles, shapes and sections of stainless steel, bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel.
Finance Minister Nirmala Sitharaman said that the customs duty changes in raw materials and intermediaries for iron and steel will reduce their prices. Besides, the duty on import of raw materials used in the plastic industry will be reduced to lower the cost of domestic manufacturing.
While the duty on naptha has been cut to 1 per cent, from 2.5 per cent, the duty on propylene Oxide has been halved to 2.5 per cent.
The import duty on Polymers of Vinyl Chloride PVC has been reduced to 7.5 per cent, from 10 per cent at the moment.
Sitharaman said the levies are being cut on raw materials and intermediaries where the import dependence is high, as a result of the customs duty on plastic.
She tweeted that this will result in a reduction of the cost of final products.
AMRG Associates Senior Partner Rajat Mohan said a reduction in import duty on these products would help fight high inflation.
The global economies are afflicting due to rising debt and high inflation. The Indian government has taken several measures to help with the high prices of petrol, diesel, coal, iron, steel, and plastic, because of collapsing weak developing economies due to high inflation, Mohan said.