Steel minister stipulates a tax on the export of iron ore...

Steel minister stipulates a tax on the export of iron ore
Submitted by Jaideep Kumar on 2010, July 17


Steel Minister Virbhadra Singh, in order to dampen the export of iron ore, stipulated an imposition of export tax at the rate of 20% on the commodity, with immediate effect. As a long term policy, the minister also went on to seek a veto on export of iron ore, claiming that the raw material should be conserved for domestic use of the industry.

The Prime Minister Manmohan Singh said that ?As far as steel ministry is concerned, we favor placing a ban on export of iron ore. We should conserve iron ore to meet the present and future requirements of the country rather than repenting later.? he added. Singh also said that as an instantaneous step towards curbing exports, a "flat 20% duty should be levied on iron ore consignments leaving the country.?

Steel secretary Atul Chaturvedi supporting the export tax said on Friday that ?We have always wanted a deterrent on ire ore exports, considering the need to conserve the resource. It is an irony that despite the abundant resource, iron ore prices in India are very high.?

Right now, export duty on iron ore fines is 5% while it is 15% on lumps. India created about 230 million tonnes of iron ore in the last financial year, of which a little less than 106 million tonnes were exported, most of which was exported to China. The Prime Minister also said that India should send out the final product of the goods made from the ore. Steel secretary Atul Chaturvedi said his ministry would give its opinion on iron ore exports at an eGoM meet that is set to take place on the July 22.