India's trade ministry has sought to extend an export promotion scheme to reimburse some local levies for domestic steel producers, a senior government official said, as the industry reels from steep fall in shipments.
The Remission of Duties and Taxes on Export Products (RoDTEP) scheme offers refunds against various embedded taxes to exporters across sectors such as automobiles and agricultural produce, with steel exports presently outside its remit.
According to a report by Reuters, finished steel exports from the world's second-biggest crude steel producer more than halved during the first seven months of the fiscal year that began in April.
New Delhi will have to set aside nearly $244 million annually to offer refunds on such taxes to the steel sector, an anonymous source stated.
Levies, duties and taxes, which are not subsumed in the goods and services tax, can add 8%-12% to costs for the steel industry, said Alok Sahay, secretary general and executive head at Indian Steel Association.
"The steel industry needs RoDTEP to offset these embedded costs of industry for parity with other exporting countries."Alok Sahay, secretary general and executive head at Indian Steel Association
"The steel industry needs RoDTEP to offset these embedded costs of industry for parity with other exporting countries," Sahay said.