State Finance Minister Sudhir Mungantiwar,presenting the first budget of a BJP-led Maharashtra, has proposed a 5% entry tax on long steel (re-bars & structures) coming from neighboring state.
“Entry Tax is levied on some goods in order to protect legitimate tax revenue of the state. it is brought to my notice that long steel is being sold directly to the consumers from neighboring states. This has resulted in a loss of legitimate tax revenue of the state. In order to ensure legitimate tax realization on consumption of long steel, I propose to levy a five entry tax on long steel. To avoid double taxation on long steel, set -off will be provided as per provision.” said by Finance Minister of Maharashtra.
Market participants mention, entry tax will not impact prices to a large extent as it is adjustable. Maharashtra based long steel manufacturers will benefit as end consumers will prefer buying from them.
Minister also proposes incentive on power, however exact quantum was not clear.
Indian Billet and Rebar prices
| Region | City | Bilet Price | W-o-W | Rebar Price# | W-o-W |
| Central | Raipur | 26,500 | -750 | 29,900 | -700 |
| Eastern | Durgapur | 27,700 | -350 | 30,500 | -300 |
| Western | Ahmedabad | 28,500 | 100 | 31,600 | -500 |
| Mumbai | 28,600 | 100 | 31,500 | -200 | |
| Northern | Mandi Gobindgarh | 30,600 | -500 | 35,000 | -400 |
| Southern | Hyderabad | 28,100 | 100 | 30,800 | 0 |
| Chennai | 28,350 | -100 | 32,300 | -100 |
Note: Basic prices in INR/MT as on 18 Mar ’15,
Excise Duty & VAT extra
#= 12mm
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