Export duty on iron pellets may be scrapped
IN A move which may provide relief to steel firms like JSW and Essar Steel and encourage exports of valueadded products, the government is considering a proposal to withdraw the Rs 300 per tonne export duty on iron pellets. Pellets are prepared by an agglomeration of iron ore and is used in steel production. “The finance ministry is considering withdrawal of export duty on pellets. The steel ministry had earlier asked the finance ministry to revoke duty on pellets as it goes against the principle of promoting value addition within the country. A decision on the matter is likely soon,” said a steel ministry source. The government imposed an export duty on iron ore at the rate of Rs 300 per tonne for ores having 62% or more iron content and Rs 50 on ores with less than 62% iron. Though there was no formal proposal to impose duty on pellets, under a new classification of the customs department, pellets also fell under the category of minerals covered under higher level of export duty.