The Budget reduced the entry tax on iron ore, pig iron and steel scrap purchased from outside the state to 0.5% (previously 1%). The value-added tax (VAT) on TMT steel bars was reduced from five to three per cent, while the entry tax on iron ore pellet cut from 1 to 0.5 per cent.
Besides, the government had also reduced the entry tax on furnace oil purchased from outside the state from 10 to 5 per cent. The sops announced by the government would bring respite to the steel industry that has been passing through its worst ever crisis with half of the units running underproduction.
Industry experts believe that this is a good move from government for ailing steel industry in the state.
“We expect steel prices to come down in Chattisgarh from April 1 by Rs 700-800 per tonne, it will certainly benefit the consumers and the manufacturers.” said an official at state steel association based in Raipur.
Leave a Reply