PTI reported that Indian steel ministry is likely to push for higher customs duty to protect domestic steel industry against cheap imports amid global slump in demand and prices.
Mr Jitin Prasada minister of state for steel said that "Steel industry has been demanding higher import duty. We will meet the steel manufacturers soon and depending on the situation push for more levy. We will have a second look of the duty structure."
Mr Prasada advocating more protection for the industry by way of higher taxes said that the India government move to levy a 5% customs duty on steel items, besides restricting their imports will provide a cushion to the sector. He said that "The India government has to take a call on economy. There are different dimensions to their decisions. It is nevertheless a welcome move."
In addition to pushing for higher import tax, Mr Prasada said that the ministry will also demand 14% countervailing duty on TMT bars and structurals to make imports competitive. He said that "We will again take up the matter seeking imposition of countervailing duty as asked for the steel industry."
Earlier this month, the India government had imposed a 5% customs duty on steel imports besides restricting arrivals of various steel items to protect Indian industry against cheaper arrivals reportedly being dumped in the country.