The Finance Ministry in its latest notification stated that the government has cut export duty on steel products and iron ore with effect from November 19, six months after the imposition of the levy. Exports of specified pig iron and steel products as well as iron ore pellets will attract 'nil' export duty. Also, export duty on outward shipment of iron ore lumps and fines with less than 58% iron content will be 'nil'.
In the case of iron ore lumps and fines with more than 58% iron content, the rate of duty will be 30%. It said import duty on anthracite/PCI, coking coal and ferronickel -- used as raw material in the steel industry -- has been hiked to 2.5%, while for coke and semi-coke it has been raised to 5%, from 'nil' earlier.
The finance ministry had in May hiked the export duty on pig iron and steel products to 15% from 'nil', a move which was intended to discourage exports and increase domestic availability to help lower prices. The tax on export of iron ores and concentrates was hiked to 50% from 30%, while on iron pellets a 45% duty was imposed.
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