The Hindu Business Line : Panel may suggest ‘revenue neutral’ duty rejig to tame steel prices

Men of steel: (From left) The Union Ministers for Finance, Mr P. Chidambaram; Commerce and Industry, Mr Kamal Nath; Mines, Mr Sis Ram Ola; and Steel, Mr Ram Vilas Paswan, on their way to attend a meeting on steel prices, in the Capital on Wednesday. —

Our Bureau

New Delhi, April 16 A four-member Ministerial committee to look into the issue of rising steel prices is set to suggest a package of “revenue neutral measures” aimed at taming domestic steel prices. Briefing reporters after the meeting the Steel Minister, Mr Ram Vilas Paswan, said that the Finance Minister has assured excise duty cut from 14 per cent to 8 per cent on steel and removal of 14 per cent Countervailing Duty (CVD) steel imports if the loss of revenue is made good through export duties.

The net revenue implication of such tax cuts will be around Rs 5,000 crore, Mr Paswan said. “My Ministry has suggested that this loss could be compensated by 15 per cent export duty on iron ore,” the Minister said adding that a final decision would taken after the report is submitted to the Prime Minister here on Thursday.

“All the Ministries have their own views and we will place them before the Prime Minister who will take a final decision. The only point which was agreed to by all the Ministers was that the price of steel has to come down,” Mr Paswan said.

The Steel Ministry proposed a 10 per cent export duty on cold rolled steel and 5 per cent export duty on GP/GC sheets.

The meeting was attended by the Finance Minister, Mr P. Chidambaram; the Commerce Minister, Mr Kamal Nathl and the Mines Minister, Mr Sis Ram Ola, apart from Mr Paswan.

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