New export curbs to rein in inflation
In a bid to contain inflation, the government on Friday imposed a 15 per cent ad-valorem duty on iron ore exports.
The move is aimed at shoring up mineral’s availability for Indian steelmakers so that the latter could refrain from increasing steel prices, which have fuelled inflation in recent months.
“In order to further strengthen a policy regime that enables conservation of good quality ore and ensures its availability to domestic industry at a reasonable price, the effective rate of duty on iron ore has been enhanced to a uniform rate of 15 per cent ad valorem,” a Ministry of Finance statement said.
The government also scrapped export duty on all steel products, except long products -- used extensively in the construction industry -- which will now attract a duty of 15 per cent compared to 10 per cent earlier.