The government has waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will lower the cost for the domestic industry and reduce prices.
Also, to increase domestic availability, the duty on exports of iron ore has been raised up to 50%, and that for a few steel intermediaries to 15%, according to a notification.
The duty changes will be effective from Sunday.
The import duty on ferronickel, coking coal, PCI coal has been cut from 2.5%, while the duty on coke and semi-coke has been slashed from 5% to ‘nil’.
The tax on the export of iron ores and concentrates has been increased to 50%, from 30%, while for iron pellets, a 45% duty has been imposed.
“This will result in reduction of cost of final products,” Finance Minister Nirmala Sitharaman tweeted.
AMRG & Associates senior partner Rajat Mohan said steep reduction in import duty on these products would help arrest high inflation.
“Global economies are ailing due to rising debt and high inflation. In light of collapsing weak developing economies due to high inflation, the Indian government has taken multiple measures to provide relief from the high prices of petrol, diesel, coal, iron, steel and plastic,” Mr. Mohan said.
