Government Not to Hike Tax on Steel Imports

SEATTLE (Scrap Monster): The Indian Finance Ministry announced that it has no immediate plans to hike taxes on steel imports, though the country happens to be a net steel importer, due to increased shipments from other countries, especially from China, said sources. It must be noted that top steel producers in the country have been demanding higher import duties in order to curb imports into the country.

The Steel Ministry has not forwarded the industry’s proposal to the Finance Ministry because of the fact that domestic steel demand continues to remain high, driven largely by infrastructure development projects announced by the government.

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The finished steel consumption by the country amounted to 87.1 million metric tons during the initial eight-month period of the current fiscal, recording 14.9% year-on-year jump, thus hitting the highest level in five years.

The imports from China touched a five-year high between April and November 2023. The imports of Chinese steel totalled 1.3 million metric tons during this period, up significantly by 48.2% over the same period a year before.

However, the government will keep a close watch on import volumes and take appropriate decision as and when needed, they said.

The steel mills have been demanding authorities to raise import taxes from the existing levels of 7.5%.