Govt levies 8% export tax on iron ore fines

NEW DELHI: Government is understood to have imposed an 8 per cent ad valorem duty on the export of iron ore fines, a move that is expected to give some respite to the industry that is reeling under pressure due to lower demand and fall in prices.

"The finance ministry has changed the duty structure on the iron ore fines. It has imposed an 8 per cent ad valorem export duty on iron ore fines, in stead of the previous Rs 200 a tonne," sources in the know of the development said.

Last week, the government had announced a fixed levy of Rs 200 per tonne on export of iron ore fines, while retaining the 15 per cent tax on iron ore lumps.

The policy makers had levied a 15 per cent tax on iron ore exports to increase its domestic availability and ease rising input cost on the steel manufacturers.

Iron ore prices were ruling at about USD 150-200 a tonne in March-April and has now gone down to about USD 70 a tonne amidst the global economic slowdown.