September 08, 2008

FM has no proposal for steel export duty roll back

Mr P Chidambaram Indian finance minister has ruled out any cut in import duty on crude oil, arguing the move would not have a direct impact on retail prices of petrol and diesel.

He also said that there is no proposal to withdraw the export cess on steel. He said “I have not received any formal proposal from the Ministry of Steel. If there is rethinking, I suppose the Ministry of Steel will send me a proposal.”

The comments on steel export duty indicate divergence of views within the government. While the steel ministry has been claiming the cess would be reconsidered, Mr Chidambaram hinted otherwise.

Steel industry representatives had met Prime Minister Manmohan Singh recently and announced price cuts to keep the export cess at bay. While the industry was under the belief that the cess would not be imposed, the revenue department decided to go ahead with it and notified it.