Budget 2021: Govt may review export duty on iron ore

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Budget 2021: Govt may review export duty on iron ore

The authorities may put additional checks on export of iron ore to permit higher availability of this crucial enter for the home metal trade at aggressive costs.

In the wake of a choose up in international metal demand, and Indian iron ore getting exported to international locations comparable to China, the home ore costs have additionally shot up, virtually doubling to over Rs 4,000 per tonne from ranges of Rs 2,000 per tonne between June to December, 2020.

Sources stated {that a} proposal to extend export duty on iron ore is being actively thought-about by the finance ministry that may think about saying the modified levy in Budget 2021-22.

A 30 per cent export duty is levied at present on iron ore having Fe (iron) content material above 58 per cent. Sources stated this may be elevated 5-10 per cent or extra to forestall its export to markets which can be prepared to pay extra to hoard the ore for future use and maximise their positive aspects.

Though the proposal is to extend the levy, sources stated the federal government may additionally look to deliver all classes of ore underneath the export duty construction as was obtainable earlier.

A better levy is anticipated to forestall the export of iron ore, tame costs and enhance availability of this uncooked materials to the home metal trade that may provide the fabric at aggressive costs for the rising requirement from the infrastructure sector.

Along with a surge in ore pricing, metal costs have additionally elevated by virtually 50 per cent in the previous couple of months. Bench mark Hot-rolled coil costs have elevated by 46 per cent to Rs 52,000 per tonne in November as in comparison with Rs 37,400 per tonne in July this yr. Rebar TMT, which is used within the housing and building sectors, had touched Rs 50,000 a tonne.

With demand for metal choosing up as infrastructure exercise picks up tempo within the nation, larger costs have develop into a giant deterrent to investments.

Also Read: Budget 2021 Expectation: What FADA expects from this yr’s funds

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