Export Duty on Iron Ore Increases up to 50%

According to the government's notice, the export duty on iron ore has been raised by up to 50% and some steel intermediaries by up to 15% in order to facilitate the greater availability.

The government has also exempted import tariffs on some commodities, such as coking coal and ferronickel used in the steel industry with the purpose to reduce the cost for the domestic industry and reduce the prices. 

The new changes are effective starting May 22. The import duty on ferronickel, coking coal, and PCI has been cut from 2.5%, while the duty on coke and semi-coke has been cut from 5% to nil. The tax on the export of iron ores and concentrates has been increased to 50% from 30%, while a 45% duty on iron pallets has been imposed. 

The Finance Minister of India, Nirmala Sitharaman said on May 21 that tariff changes on raw materials and intermediates would lower prices. Import tariffs on raw materials used in the plastics industry have also been reduced, reducing domestic manufacturing costs. She also said that the duty on propylene Oxide has been cut to 2.5% while announcing the customs duty on plastic.