Paswan writes to FM for quick levying of import duty on steel

This news updete by www.zeenews.com




New Delhi: Steel Minister Ram Vilas Paswan has sought the Finance Ministry's urgent consideration on levying 10 percent import duty on all categories of steel to ward off the threat of cheaper imports.

Fearing that falling steel prices in the global market would result in cheaper imports, Paswan has shot off a letter to Finance Minister P Chidambaram, urging him to "expeditiously consider" the proposal of levying 10 percent import tariff.

The minister pointed out that the domestic steel industry is passing through a tough time due to slackening demand for the commodity amid the global financial recession.

Paswan said the steel scenario has "drastically changed" in international markets over the last few weeks and the industry here is facing the brunt of the transformed situation.

During the last couple of months, the demand for steel in the domestic market has dipped by over 30 per cent, forcing the producers to lower prices by up to Rs 8,500 a tonne and also cut production to avoid piling up inventories.

In order to safeguard the interests of the industry, the Steel Ministry late last month sent a detailed proposal to the Department of Revenue, recommending 10 per cent import duty on all categories of steel products, including alloy, non-alloy, semi-finished and finished products.




It also favoured reintroducing 14 per cent countervailing duty on TMT (thermo mechanically treated) bars and structurals to make imports competitive, and backed steel companies' demand for withdrawing 15 per cent duty on exports of long products, primarily used in construction.

In pursuance of the Steel Ministry's recommendations, the government scrapped export duty on steel last month, but is yet to take a decision on imposing import tariff to check shipments from countries like China, Ukraine and Thailand.

An official source said the Finance Ministry has asked for more details and inputs from the Steel Ministry in order to take a final call on 10 percent import duty.

"The Finance Ministry does not have any reservation in imposing import duty at the previous level of 5 per cent, but to levy it at 10 percent, it wants to know the rationale behind it," the official said.

In its reply, the Steel Ministry has made its viewpoint clear on the enhanced level of import duty.

Steel makers are demanding 15 percent import duty, and in return have assured not raising prices for six months.






Via news