NEW DEHLI, India: In a move expected to end the country's exports of the raw materials needed to manufacture steel, the Indian government has imposed a 50 per cent export tax on all grades of iron ore.
India's finance ministry has said the higher tax came into force on 22nd May.
Iron ore, with an iron content of more than 58 percent, was already subject to an export duty of 30 percent, making it too expensive for export. But the government has now imposed a 50 percent tax on iron ore and concentrates.
Industry observers note this is consistent with the government's intention to lower the cost of domestically consumed steel.
The finance ministry said exports of iron ore pellets, which were previously not subject to any taxes, are now to be taxed at 45 percent.