Saturday proved to be a very auspicious day for the Indian industry and the general public. The central government took many important decisions. In these, excise duty on petrol and diesel was cut. Then it was announced to give subsidy on LPG cylinder.
Also, giving relief to small industries, the government decided to reduce customs duty on plastic and steel raw materials. At the same time, it was announced to increase the duty on the export of iron ore to 50 percent. These changes will be effective from Sunday.
The central government announced waiver of customs duty on imports of certain raw materials, including coking coal and ferronicals, used by the steel industry. This is a move that will bring down the cost to the domestic industry and bring down the prices.
New changes will be effective from today
Finance Minister Nirmala Sitharaman said that we are reducing import duty on some raw materials of steel, but export duty will be levied on some steel products. As per the notification, the duty on export of iron ore has been increased to 50 per cent and some steel components up to 15 per cent to increase domestic availability. The change in fee will be effective from Sunday.
“We are reducing customs duty for iron and steel on raw materials and middlemen to reduce their prices. Import duty on some steel raw materials will be reduced. Export duty will be levied on some steel products. The Union Minister also said that the government has decided to reduce customs duty on raw materials and components for plastic products.
Import duty on ferronical, coking coal, PCI coal has been reduced to 2.5 per cent, while duty on coke and semi-coke has been reduced from five per cent to ‘nil’. Duty on export of iron ore and concentrated iron has been increased from 30 per cent to 50 per cent, while on iron pellets, 45 per cent duty has been levied.
Finance Minister Sitharaman said the change in customs duty on raw materials and its components for iron and steel would “reduce their prices”. In addition, duty has also been reduced on imports of raw materials used in the plastics industry to reduce the cost of domestic manufacturing.
While the import duty on naphtha (naphtha is a flammable liquid hydrocarbon mixture) has been reduced from 2.5 per cent to one per cent, the duty on propylene oxide has been reduced from five per cent to 2.5 per cent. The import duty on polymers of Vinyl Chloride (PVC) has been reduced to 7.5 per cent from the present 10 per cent.
Customs duty cut on plastic too:
Announcing the reduction in customs duty on plastic, Sitharaman said that the levy is being cut on the raw material and its middlemen. In this case, India’s import dependence is high. “This will bring down the cost of the final products,” he tweeted.
AMRG & Associates Senior Partner Rajat Mohan said the drastic reduction in import duty on these products would help in curbing high inflation.
He said that “global economies are sick due to rising debt and high inflation. In order to protect the developing economies weak due to high inflation, the Government of India has decided to provide relief from the high prices of petrol, diesel, coal, iron, steel and plastics. These measures have been taken.”
The post Finance Ministry Decision: Export duty on iron ore increased by 50%, import duty on raw materials reduced appeared first on Spotlight 7.
source https://spotlight7.com/business/finance-ministry-decision-export-duty-on-iron-ore-increased-by-50-import-duty-on-raw-materials-reduced/
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