The steel industry in India is globally competitive and has continued to see momentum despite the disruption caused by the ongoing Russia-Ukraine conflict. The Ukraine war, aftereffects of the pandemic, and inflationary pressures contributed to rising steel prices and consequent higher input costs for domestic manufacturers. In an attempt to reduce domestic steel prices and to increase domestic availability, the Ministry of Finance issued a notification9 [Notification No. 28/2022- Customs and Notification No. 29/2022- Customs dated May 21, 2022 (w.e.f May 22, 2022)] to impose 15% export duty on steel products.
Against this backdrop, Vivek Baj Partner and Aayush Tiwari, Principal Associate at Economic Laws Practice (ELP) Law Practice) have co-authored an article for Taxsutra titled ‘The High Tide of Export Duty on Steel – Evaluating the Consequences’. In their article Vivek and Aayush express that this move on part of the Government seems ambiguous, when on one hand it is introducing the Production Linked Incentive Scheme to incentivize domestic production and on the flip side it is saddling steel manufacturers with such exorbitant export duty on steel products. They further highlight that the pressing priority of steel manufacturers is to also review the various benefits under customs/ foreign trade policy to pull through the high tide of export duty on steel products.
Read the detailed article here: https://bit.ly/3bQ9610