Posted on 24 Jan 2024
Indian steel mills are lobbying the steel ministry for safeguard measures, including an import duty of 8-12% applicable to all steel shipments, particularly those arriving from countries such as China, according to local press reports.
Steelmakers are seeking reimbursement of the additional 8-12% which is not covered under India’s prevalent tax system such as the goods and service tax (GST) and other taxes.
According to BusinessLine, steelmakers have made a pitch to steel ministry officials in order to seek the inclusion of the steel sector in the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP scheme).
The RoDTEP scheme allows exporters the remission of duties levied to them, which were not refunded or rebated under the previous system. The RoDTEP scheme came into effect on 1 January 2021.
According to Indian commerce ministry data, India’s steel imports rose 26% year-on-year to 5.6 million tonnes in the nine months through December 2023. India’s steel exports, however, fell 2% to 4.7mt.
On 10 January, the steel ministry said it is not likely to impose an import duty, citing higher-than-expected domestic demand as the main reason for not going ahead with the safeguard measures.
The Indian Steel Association, which represents domestic steelmakers, did not respond to Kallanish request for comment on Monday.
Source:Kallanish
