Government has probably decided to impose 15 per cent export duty on iron ore, used for making steel, since January iron ore prices have gone up by 50% , thereby increasing inflation.

The decision was taken at the meeting of the Committee of Secretaries (CoS) on 30th of may. The CoS has also decided to roll back export duty on steel, barring primary and semi-finished products.

At present, an export duty of Rs 300 per tonne is imposed on iron ore with 62 per cent of iron content and Rs 50 per tonne on lower grade iron ore. Under the new rule, the export duty would be based on the value of the product exported.

The domestic prices of steel have increased since 2006-07. Prices of pig iron went up by more than 70 per cent, construction steel like TMT and wire rods by more than 36 per cent and HR coils by more than 40 per cent during the recent months.

Categories: Business
Tags: Committee, construction, CoS, duty, Export, Government, inflation, iron ore prices, MIT, new, Oil, Planning, price, product, Secretaries, Steel, TMT