Commerce and finance ministry differ over steel export tax for SEZs - 01 Jul, 2008
BS reported that union commerce ministry and its finance counterpart are at loggerheads over allowing duty free supply of steel to special economic zones. As per report, commerce ministry is likely to approach cabinet secretary Mr KM Chandrasekhar over the matter.
Indian government on May 10th 2008 had imposed an export duty of 5% to 15% on various iron and steel products to boost the availability of the metal in the domestic market.
Finance ministry had stuck to its stand that the export duty would be applicable to supplies to SEZs, which is classified as exports. The commerce ministry has been demanding a clarification or amendment to the Central Board of Excise & Customs notification, which exempts steel supplies to the zones from duties.
On its part, the Directorate General of Foreign Trade, which is under the commerce ministry, has relaxed the ban on cement exports to SEZs. The ban was ordered on April 12th 2008.
