India will lower low-grade iron ore export tax

New Delhi, May 5: India will lower its export tax on low-grade iron ore. The export tax on iron ore with an iron grade of less than 58% is reduced from the current 30% to 10%, effective from June 1. This is 3 For the first time in half a year, iron ore export taxes have been adjusted.

Indian Finance Minister Arun Jaitley said that this move will boost the export of iron ore in Goa. Most of the iron ore iron grades produced in Goa are below 58%, and most Indian steel mills lack the technology to use this low-grade ore.

In order to promote the development of the domestic steel industry, the Indian government has gradually raised the iron ore export tax in the past few years. On December 30, 2011, the export taxes on fine ore and ore were both raised to 30%, and the pellet mines have been effective since January 2014. A 5% export tax is levied. The Indian government only lowered the export tax on low-grade ore.

Over the past few years, India’s competitiveness has declined as the export tax on iron ore continues to increase. At the same time, the Supreme Court successively ordered the restriction of mining in Karnataka, Orissa, Jharkhand and Goa to protect the environment. Affected by this, local steel mills have been forced to import large quantities of iron ore due to lack of raw materials. However, the current ore mining in areas such as Karnataka has resumed, and mining in other major areas will restart within this year.