India raises iron ore export tax to 50pc

The Indian government has imposed a 50pc export tax on all grades of iron ore, in a move that is likely to effectively end the country's exports of the steelmaking raw material.

The higher tax is effective 22 May, India's finance ministry said today.

Iron ore with a Fe content of more than 58pc was already subject to an export duty of 30pc that made it unviable to export. But the government has now imposed a 50pc tax on iron ore and concentrates, non-agglomerated and agglomerated, implying that all grades will now be subject to the higher duty.

Iron ore pellet exports are now taxed at 45pc, the finance ministry said. Pellet exports were previously not subject to any taxes.

By Deepali Sharma