October 12, 2008

India may remove import duty, withdraw DEPB and levy export

ET reported that Indian government is examining a proposal to reduce import duty, remove DEPB scheme and impose 10% export duties on steel in a bid to discourage exports and improve domestic supplies.

The report cited a steel ministry source as saying that "The steel ministry has proposed levy of 10% export duty on finished steel including TMT bars, semis and hot rolled coils and removal of 5% import duty on steel to the prime minister’s office. It has also suggested that DEPB benefit should be withdrawn for exporters.”

The source added that “The fiscal measures are aimed easing the steel supply in the market and bringing down input cost that could result in softening of steel prices."