India is considering scrapping or reducing a 30 per cent export tax on medium-grade iron ore after building up a stubbornly high surplus of the commodity, according to a document seen by Reuters.
India's mining industry has lobbied for months for a cut in the duty after the country's stockpile rose over the last five years to reach 149 million tonnes at the end of the financial year in March 2017.
It has stayed around that level, a senior mines ministry official said on Thursday, without wishing to be identified.
The duty is applied to ore with more than 58 per cent iron, or Fe content.
The duty is applied to ore with more than 58 per cent iron, or Fe content.
The mines ministry favours either cutting or scrapping the tax but the steel ministry wants to maintain the levy at 30 per cent.
"The major share of the stocks lying idle is ... below 58 per cent Fe grade iron ore fines and iron ore fines with Fe content of 60 per cent to below 62 per cent, which is a huge cause of concern for the miners as well as the ministry," the mines ministry said in the document, which proposes a review of the export tax.
