Right Time to Scrap Export Duty on iron, Steel: FM

New Delhi: Finance Minister P Chidambaram on Friday said the decision to scrap export duty on certain iron and steel products was taken to ensure that their exports remain competitive in the wake of falling international prices.

"International prices have fallen. In order to ensure that value-added products continue to be exported, taking into account the international prices, we think this is the appropriate time to remove export duty," Chidambaram told reporters here.

The government today abolished export duty on items such as pig iron, iron and steel ingots, bars and rods.

On withdrawal of 5 percent basic customs duty on the Aviation Turbine Fuel, he said, there will be no outgo from the exchequer as there is no import of the jet fuel.

"It is all manufactured in India, so it is only a scheduled or tariff customs rate. So the abolition of that does not cause any revenue loss," the finance minister said.

However, it helps in calculation of import parity price, he said, adding that the oil companies have already announced that they will reduce ATF prices by about 16-17 percent.



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