Steel Min invites industry suggestions on duty structure

The Steel Ministry has invited suggestions from industry bodies including Ficci, CII and Assocham on duty structures for submitting them to the Finance Ministry for the 2013-14 Budget.

"Ministry of Steel has initiated exercise for preparing the proposal for the Union Budget 2013-14. In this connection, it is requested that your proposals/ suggestions for making changes in the existing duty structure," the Steel Ministry wrote to 19 associations. Also Read: Steel firms hike prices by up to Rs 1,500/tonne
 
As on September 3, tinplates and defective cold-rolled coils attracted the highest import duty at 10%. A clutch of other items including hot-rolled sheets, coils and CR coils and sheets attract 7.5% duty. Import duty on iron ore stands at 2.5%. The Steel Ministry has asked industry to send views on changes in the procedural rules pertaining to direct/indirect taxation by October 19. India's steel imports grew by 40% year-on-year in the first quarter, keeping domestic production growth at low levels. Growth in steel imports was driven largely by the fact that the landed cost of imported steel was still cheaper than domestic steel despite increased import duty on hot rolled coils, according to a recent ICRA report. "While proposing any change in the duty structure, the detailed financial implication of such a change may kindly be worked out. And also the current level of import and demand in the domestic industry," the Steel Ministry's letter said.