Indian govt denies request for iron export tax cuts
KOLKATA (miningweekly.com) – The Indian government has turned down submissions from iron-ore miners to reduce export tax, despite a slump in global prices.
The government has ruled out reducing the 30% export tax, which had been requested by the Mines Ministry and Federation of Indian Mineral Industries (FIMI), on the grounds that the rationale for the export tax was conservation of national resources and the tax had no relation to prevailing international prices, a government official said.
Exporters, under the aegis of FIMI, have submitted to the government that with export offers for high-grade Indian iron-ore fines slumping below the $80/t mark, margins from overseas shipments had been squeezed and, in some cases, even negative.
FIMI said that while Indian steel producers were not equipped to use fines in their blasts furnaces, miners would be forced to turn down export offers at current levels, which would lead to huge stockpiles at pitheads with environmental implications.
In their submission, miners pointed out that with China being the single largest destination for Indian iron-ore, steadily falling shipments to the country would further worsen the trade deficit between the two countries and it was in the national economic interest to keep iron-ore export competitive even in a falling international market.
India’s trade deficit with China touched about $32-billion during 2012/13, with iron-ore, copper and cotton accounting for 51% of the country’s exports to China.
Exports of iron-ore fell sharply to 14.41-million tonnes in 2013/14 down from 117.37-million tonnes in 2009/10. During April to June 2014, exports were estimated at 2.25-million, down compared to 3.10-million tonnes during the previous corresponding period.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
