The central government is planning to reduce the duty across all grades for iron ore to 10% in order to revive the industry as well as help the industry to stay in the competition despite having a weak commodity market. The prices for iron ore dropped to a decade low and this move is expected to curve the situation for the said industry.
- The proposal for reduction of duty has been forwarded by the Mines Ministry to the Finance Ministry and it may be considered for the upcoming budget. FM Mr. Arun Jaitley will be presenting the budget on 29th of February.
- The price of iron ore in the world market has also declined by almost 40%. There is also a 30% export duty for iron ore fines with iron containing 58% or above. According to a government source, the central government last month has reduced export duty on iron ore pellets from 5% to 0% to facilitate competition amidst weakening situation. Also, reducing export duty will help the producers to cut their losses.
- The mining industry of Goa has also written to the Finance Ministry to reduce export duty on low grade of iron ore from current 10% to 0%.