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‘Duty on steel, soy oil inadequate’

NEW DELHI: In a bid to protect the domestic industry from cheap imports in the wake of the global slowdown, the Government on Tuesday clamped customs duty on a number of iron and steel products and crude soyabean oil. Companies engaged in the two sectors, however, dubbed the measure as inadequate.

According to an official release here, iron and steel products such as pig iron, semi- finished products, sheets and rods will attract a customs duty of five per cent, while imports of crude soyabean oil will become dearer by 20 per cent with immediate effect. The Government, the release said, has imposed duties on iron and steel products and soyabean oil “in the wake of the recent fall in the international prices of commodities and with a view to safeguard the interests of domestic producers.”

Not happy with the five per cent import duty on steel products, Ispat Industries Vice-Chairman and Managing Director Vinod Mittal said: “We were expecting a higher import tariff” as the domestic steel producers were faced with the threat of cheaper imports from countries such as China and Ukraine. As for the imposition of 20 per cent duty on crude soyabean oil, Indore-based Soyabean Processors Association of India Coordinator Rajesh Agrawal said: “The step is in the right direction but it is not complete unless the Government imposes similar duty on crude palm oil and refined edible oils too.”

The Government, it may be recalled, had abolished the import duty on steel and crude soyabean oil seven months ago as part of its exercise to contain inflation.

Apart from imposition of import duty, the Government has also simplified the refund-based service tax exemption scheme on taxable services relating to exports by increasing the time limit for filing refund claims from 60 days to six months.

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