FICCI Seeks to Remove Import Duty on Coking Coal & Met Coke

The Federation of Indian Chambers of Commerce and Industry (FICCI) is in talks with the Indian government to remove basic import duties on coking coal and met coke to protect domestic steelmakers.

FICCI appeals to scrap current 2.5% import duty on coking coal and a 5% import duty on met coke in the next federal budget on 5 July, which it said would help the industry to cost competitive.

The new government's budget which is likely to be announced on 05 July is widely expected to include measures to refinance banks amid a liquidity crunch, as well as public spending on infrastructure projects, which should be positive for the ferrous sector.

The Indian Steel Association, which represents the country's six large integrated mills, has pushed for a 25% safeguard duty on steel imports along the lines of the Section 232 tariff imposed by the US last year.

The Federation of Indian Mineral Industries (FIMI) last week appealed to Finance Minister Nirmala Sitharaman to remove a 30% export duty on iron ore above 58%. But the Pellet Manufacturers Association of India (PMAI) has asked the government to increase export duties on iron ore above 58% Fe content to 50%.

Steel consumers such as automobiles, consumer durables, housing, and infrastructure construction companies are also seeking a tax cut on consumer goods and lower personal and corporate taxes to spur growth. The Society of Indian Automobile Manufacturers wants the government to cut the general sales tax (GST) on all vehicles to 18% from the current level of 28%.