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Accident – Death – Obituary News : India’s Ministry of Steel Rules Out Immediate Tax Increase on Imported Steel
India’s federal Ministry of Steel has no immediate plans to seek higher taxes on imported steel despite the country’s shift from being a net exporter to a net importer of the alloy due to increased shipments from overseas, particularly from China, according to a senior government source.
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Top steel producers in India have requested the government to impose higher taxes on imports in order to restrict foreign supplies entering the country, which is the world’s second-largest crude steel producer.
However, at this stage, the steel ministry has not submitted a proposal to the finance ministry for the imposition of higher taxes. The source, who has direct knowledge of the matter, revealed that this is due to robust domestic demand for steel.
Steel mills are advocating for authorities to raise taxes on various steel products to control imports. However, the source declined to be identified as the discussions are not public.
The federal Ministry of Steel has not responded to an email seeking comment on this matter.
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During the first eight months of the current financial year, India’s finished steel consumption reached a five-year high of 87.1 million metric tons, marking a 14.9% year-on-year increase. The source emphasized that the government will closely monitor import volumes.
According to the latest government data, steel imports from China reached a five-year high between April and November. China, being the world’s top crude steel producer, emerged as the largest exporter of finished steel to India during this period, selling 1.3 million metric tons, which is a 48.2% increase from the same period the previous year.
In addition to the tax issue, the Indian government is working on a plan to establish a consortium of state-owned companies to import coking coal, a crucial raw material for steelmaking. This initiative aims to assist steel mills in negotiating better pricing, as the source explained.
The source further mentioned that producers of coking coal often lack transparency in terms of pricing. This move to create a consortium was recently reported by Reuters, highlighting its objective of helping domestic steel companies overcome shortages.
Furthermore, the government plans to resume talks with Mongolia, a landlocked country, as part of its efforts to diversify India’s coking coal imports.
By ruling out an immediate tax increase on imported steel, India’s Ministry of Steel aims to balance the interests of domestic steel producers while meeting the demands of the thriving steel market in the country..
