As the steel industry has sought protection from the imports at predatory prices from the country’s trade pact partners, the Commerce and Industry Minister Piyush Goyal has proposed discussions over the border adjustment tax with the leaders of the steel industry. While noting that the tax is World Trade Organisation (WTO) compliant, Goyal said that he is ready to have talks regarding the same.
Addressing the ISA Steel Conclave 2024 organised by the Indian Steel Association, the minister also asked the industry to realise the target of 500 million tonne steel production in the coming decade.
On the subject of border adjustment tax, Goyal stated, “I think there is another very important subject that I have made a lot of effort on in the past but sadly could not succeed. Let’s make one more effort. On the border adjustment tax, electricity duty and iron ore duties, when you are exporting steel, we are loaded with these taxes.”
Goyal highlighted that the government has not been able to pass on the benefits of the remission of duties and taxes on exported products (RoDTEP) to the sector due to a lack of funds. He also mentioned that the imported steel which comes into the country does not have to pay all these taxes.
Goyal noted that the tax is WTO compliant and stated, “Border adjustment tax is a WTO compliant mechanism, which if all the industries- Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (Ficci), Associated Chambers of Commerce and Industry of India (Assocham)- everyone take out, we may be in a position to get traction and get it also into the country.”
The minister also highlighted the importance of artificial intelligence (AI) and stated, “Let’s try and utilise AI to optimise our production, reduce waste and improve efficiency across the value chain. Work towards a circle economy in a bigger way.”
Goyal noted that around 80 per cent of steel products today have the stamp of made in India and labelled it as a signal of aatmanirbharta (Self-dependency) and a reminder that the consumption of steel that is melted and poured in the country is reflective of our nationality connect.
